The GoTo logo appears on the smartphone screen and in the background.
Rafael Henrique | Soba photos | Light Rocket | Getty Images
Indonesia’s GoTo Group has lost 68.5% of its initial 400 trillion rupiah ($28 billion) value since its initial public offering in April.
While the stock has been down for most of the year, GoTo shares were sold off after pre-IPO shareholders opted out of the secondary offering after the closing expires on November 30.
GoTo Group is the combined entity of Indonesia’s two largest tech companies: transportation services giant Gojek and e-commerce marketplace Tokopedia. Early investors such as SoftBank and Alibaba agreed to an eight-month lock-up period to support GoTo’s stock price after the IPO.
In October, GoTo said it was working with pre-IPO shareholders to explore a coordinated secondary offering of their shares before the lock-in expires to facilitate an orderly sale through the negotiated market.
However, this did not work. On Wednesday, the final day of the close, GoTo said that shareholders ahead of the IPO had decided not to proceed with the secondary offering.
The stock fell 7 percent to 141 rupees on Thursday and continued to fall in Monday’s trading. It was last seen trading near Rs 123, which gave the company a valuation of around Rs 126 trillion.
Other technology companies in Southeast Asia have also seen their valuations drop since they went public. Competitor Grab has lost 69% of its $40 billion initial value since listing in the US in December 2021 via a special purpose acquisition vehicle. Indonesian e-commerce company Bukalapak has fallen about 70% on an initial valuation of $6 billion since its Jakarta IPO in August 2021.
In November, GoTo Group announced that its accumulated losses for nine months rose from 11.58 trillion rupees a year ago to 20.32 trillion rupees, even as its losses narrowed in the third quarter as it cut costs.
The group also announced that same month that it would lay off 12% of its workforce – or about 3,000 jobs.