GoTo Shares Fall to Record Low as Major Holders' Lock-Up Expires




  • In Business
  • 2022-11-30 08:57:49Z
  • By Bloomberg
 

(Bloomberg) -- Shares of GoTo Group plunged to a record low as a lock-up on its major shareholders' stakes neared expiry, suggesting investors are expecting some of them to reduce their holdings.

Most Read from Bloomberg

  • Scientists Revive 48,500-Year-Old 'Zombie Virus' Buried in Ice

  • These Are the Best and Worst Cities for Expats to Live and Work In

  • Banks Stuck With $42 Billion Debt Seize Chance to Offload It

  • NYC Becomes One Billionaire Family's Haven From China Property Crash

  • This Is Where Luxury Property Prices May Rise and Fall the Most in 2023

The stock fell as much as 6.8% in Jakarta trading and headed for its eighth straight daily drop, leaving it down 55% since its initial public offering in late March. Indonesia's largest tech company now has a market value of about $11 billion.

Early backers such as Alibaba Group Holding Ltd. and SoftBank Group Corp. agreed to an eight-month lock-up expiring Nov. 30 to support the stock price following the IPO. GoTo has been trying to avoid a situation where a large part of the backers would seek to cash out at the same time, attempting a novel plan to find buyers for controlled sales of their stakes.

Yet on a conference call last week, Chief Executive Officer Andre Soelistyo said that there were no assurances that such a controlled share sale will take place.

About 1 trillion GoTo shares, or more than 90% of the total outstanding, are becoming eligible to be sold. Still, that includes holders such as GoTo's employee fund that are unlikely to sell. Alibaba and SoftBank each own about 9% of GoTo.

Formed via a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, GoTo raised $1.1 billion in one of this year's largest IPOs. The share sale boosted the value of stakes of China's Alibaba and SoftBank's Vision Fund to almost $5 billion combined.

In late June, Chinese artificial intelligence software maker SenseTime Group Inc. slumped as much as 51% in Hong Kong trading after a lock-up of its shares expired following its December IPO.

--With assistance from Yoolim Lee.

Most Read from Bloomberg Businessweek

  • Car Price Divergence Hints at More Painful Inflation Ahead

  • Tesla's Lithium Lead at Risk as Rivals Make Supply Deals

  • How to Keep Your Investments Halal

  • TikTok's Viral Challenges Keep Luring Young Kids to Their Deaths

  • More Men Are Staying Out of the Workforce to Care for Kids

©2022 Bloomberg L.P.

COMMENTS

More Related News

Hong Kong
Hong Kong's Lee Aims to Encourage Aramco to List in City

(Bloomberg) -- Hong Kong Chief Executive John Lee is seeking to convince oil giant Saudi Aramco and its units to consider a secondary listing in the Asian...

Oil
Oil's New Map: How India Turns Russia Crude Into the West's Fuel

(Bloomberg) -- India is playing an increasingly important role in global oil markets, buying more and more cheap Russian oil and refining it into fuel for...

ION
ION's Woes Far From Over Even If It Paid Ransom, Experts Say

(Bloomberg) -- The hackers behind the recent ransomware attack on ION Trading UK, which upended derivatives trading around the world, claim the extortion...

Central Bankers Curb Their Enthusiasm for Rate Hikes: Eco Week
Central Bankers Curb Their Enthusiasm for Rate Hikes: Eco Week

(Bloomberg) -- Waning global enthusiasm for aggressive interest-rate increases may dominate the dozen or so central-bank decisions due in the coming...

FOMO is Gripping Credit Markets, Making Bond Premiums Vanish
FOMO is Gripping Credit Markets, Making Bond Premiums Vanish

(Bloomberg) -- It's been some time since companies could raise cash in debt markets and come away feeling like they got the better end of the deal.Most Read ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business