GoTo, after merging with Gojek and Tokopedia last year, sets a potential deal with financial advisers. The firm considers $1bn convertible bond sales for funding operations. Based on the recent analysis, this Indonesian largest tech company is still a bit far from gaining profit. According to the first investor engagement, the company said that the CB would be a five-year tenor. Then the coupon would be around 3% to 5%. In this case, GoTo does not give any comments.
Previously in the domestic IPO in March, the firm raised around $1.1bn at Rp338 per share. The company plans to to sell above 10% of its capital in a US IPO, probably by the end of this year. According to IFR Asia, GoTo listed a free float of only 3.9%. They still have time to increase a minimum of 7.5% for regulation by March 2024. In June this year, the company was looking for approval from shareholders to sell 118.4bn series A shares. This is actually 10% of the company’s capital. Based on the information, this funding would be through a private placement for working capital plus its subsidiaries.
Recently, the company’s recent closing was Rp290, this would be valued at Rp34trn. However, the company must decide to serve a steep discount in order to sell shares and bond sales. A Singapore-based banker argues that basically there is relation at in terms of share price. The share price will not affect the company’s financial performance and industry valuations.
In fact, the shares trading were below the IPO price. So, the listing dropped as much as 10.5%. This is actually following the disappointing second quarter results.
