Photo credit: GoTo
Indonesian tech titan GoTo seeks shareholder approval to raise new capital through a private placement of shares, as revealed in a disclosure obtained from the Indonesia Stock Exchange.
The company stated its intention to issue 118.4 billion series A shares in the private placement, which GoTo had announced in May 2022 and was later approved during a shareholders meeting on June 28, 2022. The plan was not implemented at the time, as the company was evaluating options, according to the filing.
GoTo will hold another shareholders meeting on June 30 to seek approval. If approved, the company has one year to implement the private placement.
The company said that it will use the fresh funds to support its working capital and some of its subsidiaries, including Tokopedia, Swift Logistic Solutions, GoPay, GoPayLater, and Kartuku. The funds will also be used to pay the company’s debts if necessary.
In April, GoTo announced its financial results for the first quarter of 2023, revealing a 41% reduction in net loss to 3.9 trillion rupiah (US$265 million), compared to the previous year. Meanwhile, its adjusted EBITDA showed a 67% improvement in the same period.
See also: Why GoTo’s shares jumped following Q1 results, while Bukalapak and Blibli are flat
Currency converted from rupiah to US dollar: US$1 = 14,716.98 rupiah.
Editing by Miguel Cordon and Jaclyn Tiu
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