GoTo to renew option to raise further funds (Updated)

Update (May 24, 11:30 a.m. SGT): This article was updated with a comment from a GoTo spokesperson and to reflect the nature of the transaction.

GoTo Group is seeking shareholder approval to raise further funds through a private placement, less than two months after the firm went public.

The process is pending approval from shareholders at the annual general meeting that’s scheduled for late June. If approved, the private placement can be executed within a year after that meeting.

GoTo would then be authorized to issue up to 118.4 billion series A shares, or around 10% of its current paid-up capital, which is far higher than the number of shares that were issued during its IPO.

GoTo Group CEO Andre Soelistyo / Photo credit: GoTo Group

However, a company spokesperson said that this was “not a new matter, but a purely administrative one that was highlighted in our IPO prospectus.”

“It is common market practice in Indonesia to carry out an annual administrative process that renews previously granted approval for the option to conduct non-preemptive issuances”, he added. “It does not mean we intend to carry out such an issuance at this point in time – we are simply refreshing the approval from all shareholders in line with good corporate governance practice as a public company.”

The exercise price of the new shares should be at least 90% of the company’s average closing share price on the Indonesia stock exchange for 25 consecutive trading days before the date of application for additional shares listings. That’s according to regulations by the Indonesia Financial Service Authority (OJK).

GoTo Group said that the funding would be used to support the company’s working capital and its subsidiaries, such as Tokopedia, GoPay, and GoTo Financial.

See also: GoTo IPO marks win for 2 early SEA VCs, and may supercharge the region’s VC scene