GoTo shares fall to new low after stock lockup expires

Shares of Indonesian tech titan GoTo Group broke another record low after its IPO stock lockup period ended on November 30.

Photo credit: GoTo Group

The stock price plunged about 6.6% to 141 rupiah (US$0.009) on Thursday morning in Jakarta, down 58% from the IPO price of 338 rupiah (US$0.022).

Today is the first day GoTo’s early backers can divest their shares. The company’s valuation has now fallen to around US$10 billion from US$15 billion at the end of October.

About a month ago, it was reported that GoTo was negotiating with its early backers – including Alibaba and SoftBank – for a controlled stake sale to avoid a potential drop after the conclusion of the lockup period.

However, the plan appears to have stalled, Bloomberg reported.

According to the report, which cited people familiar with the matter, the shareholders and potential buyers involved in the discussion didn’t agree on a price.

See also: GoTo takes a knife to costs, but market remains unconvinced

With the lockup period concluded, there are now around 1 trillion GoTo shares – more than 90% of the total outstanding shares – that are eligible for sale.

The company raised roughly US$952 million in its financial debut in April by selling more than 40.6 billion of its shares, representing 3.43% of its enlarged share pool.

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,633 rupiah