Wong Yiwei
Shares of Indonesian internet company GoTo Gojek Tokopedia plunged on Friday. Even after the company has tried to assure investors that it has enough cash to achieve profitability despite the sluggish share price over the past few weeks, the company’s share price has declined following the expiration of the lockup period. stock.
The internet technology company’s shares fell to a 7.0% lower limit at 93.00 Indonesian rupiah ($0.01) in morning trading. Shares have fallen 63% since November 30, when the lockup period for major shareholders ended, and more than 70% since the company’s initial public offering.
In an online presentation on Thursday, Chief Financial Officer Jackie Law told investors GoTo is on track to become profitable, with various metrics such as the group’s contribution margin improving in the third quarter. , noted that the company’s balance sheet is “healthy enough.” .”
The company will consider selling non-core assets and controlling costs to reach break-even, Lo said.
In November, the company announced in a press release that it would cut 1,300 jobs, or 12% of its total workforce, to cut costs amid an uncertain economic outlook.
GoTo also said Thursday it is considering plans to conduct a private placement by issuing 118.43 billion shares, or 10% of the company’s issued and paid-up capital. The company received approval from shareholders on June 28 to proceed with the private placement.
Nirgunan Tiruchelvam, head of consumer and internet division at Aletheia Capital, said the stock had started reporting with a sell rating and a target price of IDR80, with only $2 billion in net cash post-listing, so working capital requirements 4th quarter of 2023 due to high
Given the recent decline, it makes no sense for investors to invest in GoTo shares, and a private placement for existing shareholders would require more capital, as the company would have to issue shares at a discounted price. The company’s options for procurement could also become increasingly difficult, he said by phone.
“The end of the lockup exposes its valuation and financial vulnerabilities,” Tilchelvam wrote in a report, noting that GoTo’s plans to issue shares next year “will be dilutive and difficult. ‘ added.
Compared to other Southeast Asian tech companies such as Grab Holdings Ltd. and Sea Ltd., GoTo’s cash flow is relatively weak, which is “likely to run out of steam in the ASEAN trilateral tech race.” he said it meant
Founded by the merger of ride-hailing company Gojek and e-commerce company Tokopedia, the company raised $1.1 billion at its April debut in what was one of Asia’s biggest IPOs in 2022.
Write to Yi Wei Wong at yiwei.wong@wsj.com.
(Closed) Dow Jones Newswire
December 8, 2022 23:17 ET (04:17 GMT)
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