The pre-IPO shareholders of Indonesia-listed technology group PT GoTo Gojek Tokopedia Tbk have decided not to pursue the plan for a coordinated secondary offering of shares after a lock-up period ends on Nov 30, the company said on Wednesday.
GoTo did not explain further but the announcement may indicate a hesitancy on the investors’ part amid market volatility.
An IPO lock-up prevents early investors and company insiders from selling their stake for a certain period after the public offering.
GoTo, which was formed last year following a merger of ride-hailing-to-payments firm Gojek and e-commerce leader Tokopedia, raised $1.1 billion through an initial public offering in April this year.
The company’s shares have declined consistently for eight consecutive trading days and hit their lowest point in the last couple of days. GoTo’s shares closed at 151 rupiah apiece on Wednesday, down nearly 7%.
The company initially said a month prior that it was exploring the offer to facilitate an orderly sale through the negotiated market without issuing any new shares or selling any shares in the process, which means no dilution was expected.
According to the company’s prospectus, its pre-IPO shareholders include the company’s executives, GoTo Peopleverse Fund, SVF GT Subco (Singapore), Taobao China Holding, PT Saham Anak Bangsa, and its President Commissioner Garibaldi Thohir, among others.