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Bloomberg
GoTo Group’s post-IPO stock selloff makes it the worst performer among 11 tech and internet companies that raised more than $500 million in inaugural share sales this year.
Shares of the Indonesian startup provider of food delivery services to fintech solutions are falling for a 10th straight session, taking losses since listing to 61%. The recent slide was triggered by fears that backers such as Alibaba Group Holding and SoftBank Group Corp would sell stakes when a lock-up period. The stock has tumbled by the most allowed by the exchange every day.
Several tech companies that listed over the past 18 months, such as Zomato Ltd in India and SenseTime Group Inc in Hong Kong, saw their shares plunge once early investors were allowed to sell stakes following their initial public offerings.
Other recent big tech listings from Southeast Asia have also tumbled amid a slump in peers shares globally. Competitor Grab Holdings Ltd’s stock has lost 65% since its listing in New York following the merger with a special purpose acquisition company one year ago. Online marketplace PT Bukalapak.com is down 67% since its Jakarta debut in August 2021.
GoTo officers planned to facilitate a controlled stake sale by pre-IPO backers, attempting to avoid a plunge in price, but the proposal didn’t come to fruition. GoTo shareholders that had considered selling decided not to proceed at this time, GoTo said.
Indonesia’s largest tech company has lost about $22 billion in market capitalisation from a peak reached in June.