- Indonesia’s largest tech company GoTo Gojek Tokopedia PT Tbk GTOFF, discussed a controlled sale of $1 billion stakes with its significant owners to avoid a stock crash on the lock-up expiry in November.
- GoTo gauged the interest of early backers, including Alibaba Group Holding Limited BABA and SoftBank Group Corp SFTBF SFTBY for a managed sale of some of their shares to new investors, Bloomberg reports.
- Alibaba holds about 8.8% of GoTo, and SoftBank’s stake is about 8.7%.
- Also Read: SoftBank Expects Windfall Gain of $34B From Alibaba Stake Sale: Report
- GoTo discussed with some investors to get them to commit to keeping their shares for a further period of up to six months.
- Many significant shareholders agreed to hold their stakes for at least eight months following the company’s initial public offering in late March.
- “GoTo’s plan to manage share-price volatility by engaging early investors such as Alibaba and Softbank to sell down their shares could help prevent a sharp correction,” Bloomberg analyst Nathan Naidu said.
- GoTo has engaged Citigroup, Inc C and Goldman Sachs Group, Inc GS to help manage the potential selldown.
- Formed via a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, GoTo raised $1.1 billion in one of the world’s largest IPOs this year.
- After an initial surge following the debut, GoTo shares have reduced gains to trade about 40% below the IPO price.
- GoTo is a leading internet company in Indonesia whose mobile-savvy consumers shop on Tokopedia’s platform and order rides and food via Gojek’s app.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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