Indonesia tech firm GoTo seeks approval to issue 118.44 billion shares

INDONESIA'S biggest tech company GoTo Gojek Tokopedia intends to issue a maximum amount of 118.44 billion of shares worth around 10 per cent of its total capital through a private placement.

The private placement will be put forward for shareholder approval at GoTo's annual general meeting on Jun 28, it said in a statement on Friday (May 20).

The tech company seeks to raise funds to support its own working capital and for its subsidiaries like its e-commerce unit Tokopedia, according to the statement.

The price of the new shares shall be at least 90 per cent of the average closing price of GoTo's shares for 25 consecutive trading days prior to the date of application for the additional shares, it said.

Shares of GoTo closed at 304 rupiah per share on Friday or down 10 per cent from its IPO price of 338 rupiah.

GoTo debuted on Apr 11 after raising US$1.1 billion in an initial public offering by selling around 4 per cent of its shares. REUTERS