Photo credit: Gojek
Indonesia’s GoTo plans to issue a maximum 120.14 billion series A shares, or 10% of its total issued and paid-up capital, via a private placement.
According to a disclosure on the Indonesian Stock Exchange (IDX), the tech firm will use any proceeds raised for working capital and debt repayment in the future, if any.
Of the total proceeds, 35% will go towards GoTo itself. Meanwhile, 20% will be allocated to GoPay, 25% for fintech unit Multifinance Anak Bangsa, and 20% for payment service provider GoTo Solusi Niaga (formerly Multi Adiprakarsa Manunggal) and GoTo’s groceries business.
Aside from this, GoTo previously said it is eyeing an up to US$200 million buyback – its first after its ecommerce deal with TikTok Shop.
“The estimated number of shares to be bought back by the company will not exceed 10% shares included in the current treasury shares,” noted GoTo in its filing.
The company had shown an 89% year-on-year improvement in adjusted EBITDA for the first quarter of 2024. It has said it remains on track to meet its target “to maintain adjusted EBITDA profitability for the full year of 2024.”
See also: GoTo CEO delivers first quarterly profit, but will he stay on?
Editing by Miguel Cordon and Eileen C. Ang
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