GoTo is negotiating a share sale with major investors to avoid potential stock c...

GoTo is negotiating a share sale with major investors to avoid potential stock crash

GoTo is negotiating a share sale with major investors to avoid potential stock crash

12 hours ago

GoTo Group is in talks with its major shareholders including Alibaba and SoftBank to manage the sale of their stakes, Bloomberg reported, citing sources familiar with the matter.

The talk is part of an effort to prevent a potential drop in GoTo stock price that could occur if many investors sell shares when a lock-up period expires on Nov. 30.

The Indonesian tech giant is evaluating whether early backers are interested in selling some of their shares to new investors. Discussions have also been held with some investors to get them to commit to holding their shares for up to another six months.

Talks with investors are at an early stage, and GoTo has yet to make any final decisions, the report said.

About 1 trillion GoTo shares, or more than 90% of the total outstanding, become eligible to be sold starting Nov. 30. Alibaba holds about 8.8% of GoTo, and SoftBank’s stake is about 8.7%.

To consolidate its position in Southeast Asia's competitive internet industry, ride-hailing giant Gojek merged with e-commerce platform Tokopedia last year to form GOTO. The IPO for GoTo, which took place in April of this year, brought in roughly $1.1 billion.

Shares of GoTo, like most of the world's tech companies, have been falling due to high inflation, interest rate hikes, and other economic headwinds, and are currently trading about 40% below their IPO price.

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