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GoTo shares slide to IPO price level
The slide triggered a stabilisation measure on its seventh day trading.
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From left to right: Kevin Aluwi, Patrick Cao, Andre Soelistyo dan William Tanuwijaya at GoTo’s Listing Day Ceremony at the Indonesia Stock Exchange in Jakarta on April 11, 2022. (GoTo/Henry)
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hares of Indonesia's largest tech firm GoTo closed 5.59 percent lower at 338 rupiah per share on Wednesday, returning to its initial public offering (IPO) price and triggering a stabilization measure on its seventh day trading.
GoTo, a merger between ride-hailing firm Gojek and e-marketplace Tokopedia, had risen as much as 1.67 percent earlier on Wednesday before erasing its gain. The firm debuted at the Indonesia Stock Exchange (IDX) last week after raising US$1.1 billion in the world's fifth-largest initial public offering this year, selling only 4 percent of its shares.
GoTo had put in a place a scheme to avoid a big drop in its share price during its debut month.
PT CGS-CIMB Sekuritas Indonesia was appointed as "stabilization agent" to buy up shares from the market should the price hit the IPO level of 338 rupiah or below.
GoTo reported in a stock exchange filing that the stabilization measure was triggered on Wednesday. A total 1.22 billion shares were bought at 338 rupiah, according to data by brokerage house CGS-CIMB Sekuritas, which was attached to the filing.
The greenshoe option was set for a maximum 6.09 billion shares, according to GoTo's IPO prospectus.
Strong gains at IPO
GoTo soared as much as 23 percent in its IDX debut on April after a keenly watched IPO, fuelling expectations of more offerings to come from the sector in Southeast Asia's largest economy.
The IPO went forward despite many IPOs across the globe being pulled due to the Russia-Ukraine war and rising interest rates.
"There was no perfect timing for this IPO, but our focus was on Indonesia, with a local investor audience," said GoTo CEO Andre Soelistyo, a former private equity banker who steered Gojek's push into consumer services.
The IPO made GoTo Indonesia's third most-valuable listed firm at $31.6 billion, along with state-owned Telkom Indonesia, and after private lender Bank Central Asia (BCA) and state-owned lender Bank Rakyat Indonesia (BRI).
