Early backers such as Alibaba Group Holding Ltd. and SoftBank Group Corp. agreed to an eight-month lock-up expiring Nov. 30 to support the stock price following the IPO. GoTo has been trying to avoid a situation where a large part of the backers would seek to cash out at the same time, attempting a novel plan to find buyers for controlled sales of their stakes.
Shares of GoTo Group plunged to a record low as a lock-up on its major shareholders’ stakes neared expiry, suggesting investors are expecting some of them to reduce their holdings.
The stock fell as much as 6.8% in Jakarta trading and headed for its eighth straight daily drop, leaving it down 55% since its initial public offering in late March. Indonesia’s largest tech company now has a market value of about US$11 billion.
