Shares of GoTo Group fell to yet another record low ahead of a meeting with investors Thursday afternoon, where the Indonesian internet company is expected to explain how it’s being affected by the slump.
(Bloomberg) — Shares of GoTo Group fell to yet another record low ahead of a meeting with investors Thursday afternoon, where the Indonesian internet company is expected to explain how it’s being affected by the slump.
The stock has suffered as a lockup on its major shareholders’ stakes expired at the end of November, freeing early backers to reduce their holdings.
The unprofitable company is meeting with investors at 2 p.m. Jakarta time in a session accessible online.
Investors are assessing GoTo’s prospects as the ride-hailing and e-commerce provider faces intensifying competition from rivals such as Grab Holdings Ltd.
and a deteriorating global economy. GoTo is about six quarters away from a cash crunch, Aletheia Capital said, recommending investors sell the stock.
The stock plunged 6.5% in Jakarta trading — close to the daily limit — leaving it down 70% since its April debut.
Indonesia’s largest tech company now has a market value of about $7.6 billion.
Early backers such as Alibaba Group Holding Ltd. and SoftBank Group Corp. were held to an eight-month lockup expiring Nov.
30 to support the stock price following the company’s initial public offering. GoTo’s plan to facilitate controlled stake sales by pre-IPO backers — aimed at avoiding a bigger selloff at once — didn’t come to fruition.
Formed via a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, GoTo raised $1.1 billion in one of this year’s largest IPOs.
–With assistance from Yoolim Lee.
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