GOTO Will Conduct a Private Placement of 120.14 Billion Shares

CORPORATE ACTION - JAKARTA. PT GoTo Gojek Tokopedia Tbk (GOTO) is set to conduct a private placement of 120.14 billion Series A shares, according to a disclosure statement.

The private placement is equivalent to 10% of the fully paid and issued capital. GOTO will seek approval from shareholders at the General Meeting of Shareholders (GMS) on June 11, 2024.

GOTO management stated that the private placement period will be carried out within one year from the GMS.

The funds raised will be used by GOTO to support working capital needs and future debt conversion, if any.

Specifically, 35% of the private placement funds will be deposited to GOTO and its subsidiaries, including PT Dompet Anak Bangsa (25%) and/or PT Multifinance Anak Bangsa (25%) and/or PT GoTo Solusi Niaga and each GOTO-owned groceries business (20%).

The minimum execution price for the new GOTO shares is 90% of the average closing price of the Company's shares on the Indonesia Stock Exchange (IDX) over a consecutive 25 trading day period in the regular market before the date of application for listing of the new shares resulting from the private placement to the IDX.

According to GOTO management, the closing price of shares on April 30, 2024, was IDR 64 per share.

This private placement is expected to increase the liquidity of the Company's share trading. The implementation of the private placement will also provide additional funds for the Company to support the development of the company's and subsidiaries' business activities and strengthen the company's capital structure.

"These benefits will indirectly increase the added value for the company's shareholders," GOTO management explained in the disclosure information.

If the private placement is implemented, the percentage of share ownership of the Company's current shareholders will decrease (dilution) by a maximum of 9.09%. The implementation of this private placement will not result in a change in the voting rights ratio of Series B shares to Series A shares.

"In general, the private placement plan will have a direct impact on the capital structure and liquidity of the Company's shares. In connection with the private placement, the total equity and total cash and cash equivalents of the Company will increase with the funds obtained from this corporate action," said management.

Previously, GOTO had conducted a private placement by issuing 17.04 billion new shares. The issuance of new shares by GOTO resulted in a total of 1.2 trillion shares fully paid and issued after the private placement.