GoTo Will Increase Capital Through "Private Placement"

PT Goto Gojek Tokopedia Tbk (IDX: GOTO) will make additional capital without pre-emptive rights or private placement. The company will issue a maximum of 118 billion series A shares with a value of Rp1 per share or 10% of the total issued and paid-up capital.

In the disclosure of information on the Indonesia Stock Exchange (IDX), GoTo's management said that the funds obtained will be used by the company to support the company's working capital needs, PT Tokopedia, PT Dompet Anak Bangsa, and/or PT Multifinance Anak Bangsa.

Meanwhile, the implementation private placement This will wait for approval at the General Meeting of Shareholders (AGM) which will be held on June 28, 2022. There is no information regarding the implementation time private placement this. However, the implementation period will be carried out within a period of one year in accordance with the provisions of Article 25 POJK No. 22.

"The purpose of this additional capital is to develop the company's activities and strengthen the company's capital position," said GoTo Group's management statement some time ago.

If the PMTHMETD implementation is effective, the percentage of share ownership will be diluted by a maximum of 9,09%. The implementation of this corporate action will also not result in a change in the ratio of voting rights for series B shares to series A shares.

Additional capital

GoTo's move to seek additional new capital gives a signal regarding its plans to dual listings. In fact, recently, GoTo only listed its initial public offering on the IDX in March.

In the prospectus GoTo IPO, GoTo plans to be listed on exchanges in other countries, including the New York Stock Exchange (NYSE), National Association of Securities Dealers Automated Quotations (NASDAQ), Hong Kong Stock Exchange (HKSE), Singapore Stock Exchange (SGX), or London Stock Exchange. (LSE).

In addition, the company also has big plans to build hyperlocal through its three subsidiaries, viz Gojek (ride-hailing), Tokopedia (e-commerce), and GoTo Financial (fintech). With this strategy, GoTo seeks to accelerate the growth of new users, user engagement, and penetration of newly launched products.

Of the proceeds from the IPO, 30% will be used by the company, 25% will be allocated to PT Dompet Anak Bangsa (GoPay), and about 5% to PT Multifinance Anak Bangsa (part of GoFinance).

As of September 2021, GoTo recorded revenue of Rp. 3,40 trillion and a huge loss of Rp. 11,58 trillion. Meanwhile, GoTo's total assets were recorded at Rp. 158,17 trillion.

Currently, GoTo's share price is recorded at the level of IDR 290-300 per share.