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It has been over two months since GoTo Group (GOTO, IDX) raised more than a billion dollars in one of the largest IPOs of the year. Since then, its stock price has nearly halved, and from that point, it has more than doubled to get back to hovering slightly above 382 rupiah (US$0.026) – its closing price on its first trading day.
A rather roundabout way to get back to square one, but nothing marks a better welcome to the public markets quite like stomach-turning high volatility. However, these sharp share price movements aren’t as random as they appear.
Apart from macroeconomic factors that influence valuations, there are catalysts at a company level that can flip investor sentiment around its stock. For instance, M&A chatter from reliable industry and media sources would likely send the share price of the selling firm soaring.
So, on this week’s Big Story, Tech in Asia goes on a hunt, aided by investment managers, to discover these catalysts and add a touch of logic to GoTo’s wild swings. The feature piece further details the future prospects of Indonesia’s biggest tech company, taking into account its widening losses and cash burn.
— Shravanth
The Big Story
Lessons from GoTo’s IPO and financial results so far
Image credit: Timmy Loen
The GoTo listing and its performance holds lessons for both investors and tech companies planning an IPO.
3 Trends to watch
Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. We feature the stocks that are likely to make big moves during the week.
Image credit: Timmy Loen
1️⃣ Leaving clampdowns in the rearview: In the first major signs of China releasing the pressure valve on its big tech firms, Didi Global (DIDI, NYSE) is expected to get the all-clear from regulators to resume normal business.
2 Eye-popping facts 👀
The one you didn’t see coming
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