Indonesia’s largest tech company GoTo Group said it is in talks with its owners for a controlled sale of their stakes, seeking to avoid a potential stock slump when a lock-up on their holdings ends next month.
The ride-hailing and e-commerce provider is discussing stake sales that would occur after the lock-up period expires on Nov 30, the company said in a statement Monday. GoTo wouldn’t sell any new shares as part of the plan, and the company said there is no assurance that a transaction will take place.
GoTo is gauging the interest of early backers including Alibaba Group Holding Ltd. and SoftBank Group Corp. for a managed sale of roughly US$1 billion ($1.42 billion) of their stakes, people familiar with the matter said last week. The plan is part of an effort to prevent a potential drop in GoTo stock price that could happen if many investors sell shares when the lock-up period expires.
Many major shareholders agreed to hold onto their stakes for at least eight months following the Jakarta-based company’s initial public offering in late March. Formed via a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, GoTo raised US$1.1 billion in one of the world’s largest IPOs this year.
In late June, Chinese artificial intelligence software maker SenseTime Group Inc. slumped as much as 51% in Hong Kong trading after a lock-up of its shares expired following its December IPO.
