HomeeCommerce NewsFounder's surprise sale takes Indonesia's GoTo nosediving as much as 19%

Founder’s surprise sale takes Indonesia’s GoTo nosediving as much as 19%

It is seen that Indonesia’s biggest firm, GoTo, is feeling the pinch right now as there is a report where its stocks have taken a nosedive after reports of its founder offloading a lot of the company’s shares arrived. As per the report, “Indonesia’s biggest tech firm plunged as much as 19.4% Monday after William Tanuwijaya disclosed he unloaded 332 million shares of the company late on Friday, reducing his slice of the company to 1.72% from 1.77%. GoTo trimmed losses and was down about 9% in late morning trade. The disclosure coincided with the completion of a private placement involving as many 17.05 billion new shares.”

It is also worth noting that “Investors have pummeled GoTo this month after concerns mounted about the market environment in its main businesses of ride-hailing and e-commerce, dogged by stubbornly weak consumption and intensifying competition. GoTo has shed roughly $1.5 billion of value over at least five losing sessions up to Monday morning. The shares are down more than 70% from their November high, after the company was hit by foreign fund outflows from its home country” per the report.

JP Morgan analysts wrote that “Some investors regarded the private placement as a warning about an urgent need for capital” which is also the reason why its shares nosedived this morning. “There’s also uncertainty over the regulatory environment in Indonesia, after the government outlawed e-commerce on social media, a move that dealt a blow to ByteDance Ltd.’s TikTok but also raised questions about its approach to internet innovation”.

One analyst also wrote that “There is some misperception that the Non Preemptive Right Issue is seen as a sign of weakness”. The report also mentions that “Patrick Walujo took over as chief executive in June and is now carrying out his predecessors’ campaign to shave losses by cutting jobs, curbing promotional spending and tightening expense controls”. After years of growth at GoTo, it is seen that there are signs of slowing down in the company and this is the reason why they need to offload employees in order to turn profitable once again as those revenue figures are no longer sustainable for the current conditions.

Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

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