Indonesian start-up GoTo is world's worst large-size tech IPO this year

Indonesian start-up GoTo is world's worst large-size tech IPO this year
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(Dec 2): GoTo Group's post-initial public offering (IPO) stock sell-off makes it the worst performer among 11 tech and internet companies that raised more than US$500 million (RM2.2 billion) in inaugural share sales this year.

Shares of the Indonesian start-up 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 Ltd and SoftBank Group Corp would sell stakes when a lock-up period ended this week. The stock has tumbled by the most allowed by the exchange every day this week.

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 IPOs.

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 did not come to fruition. GoTo shareholders that had considered selling decided not to proceed at this time, GoTo said on Wednesday.

Indonesia's largest tech company has lost about US$22 billion in market capitalisation from a peak reached in June. The company's IPO raised US$1.1 billion and the shares soared 13% in their first day of trade in April, following what was at the time one of the world's largest IPOs for the year.