Jofie Yordan · · 1 min readGoTo in talks to sell investor stakes worth $1b to avoid stock crash
GoTo Group is in negotiations with its major investors, including Alibaba and SoftBank, for a controlled sale of around US$1 billion worth of their stakes in the Indonesian tech giant, reported Bloomberg.
The move is part of a plan to avoid a potential drop in GoTo stock prices once the IPO lock-up period ends on November 30, which could see many investors sell their shares simultaneously.
GoTo Group CEO Andre Soelistyo / Photo credit: GoTo Group
The company, formed through the merger of Gojek and Tokopedia, has also reportedly asked some of its investors to hold their shares for a further period of up to six months. However, the discussions are currently still in the early stages.
GoTo has sought advice from Citigroup, Goldman Sachs, and local advisers on the potential stake sale.
When the lock-up period ends, there are around 1 trillion GoTo shares – more than 90% of the total outstanding shares – that are eligible for sale.
Following its IPO in April, GoTo’s market value has dipped to US$15 billion, with its share price now below its offer price.
See also: Is Blibli’s IPO a risk worth taking?
Editing by Samreen Ahmad and Arpit Nayak
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