IDX-listed PT GoTo Gojek Tokopedia Tbk is seeking approval for the cancellation of treasury shares at the upcoming Extraordinary General Meeting of Shareholders (EGMS) on August 30 to prop up its share value, according to a statement on Wednesday.
GoTo is set to cancel 10,264,665,616 Series A shares acquired in 2021 and 2022 through pre-IPO buybacks and an IPO-related greenshoe programme.
“The cancellation of these treasury shares relates to buyback initiatives that took place prior to IPO, as well as the greenshoe programme outlined in our IPO prospectus. The cancellation will add value to our shareholders by reducing the number of shares in circulation, while at the same time ensuring compliance with the relevant law and regulations,” Koesoemohadiani, GoTo’s corporate secretary, said.
The Series A shares are 8% of GoTo’s treasury shares totalling 127,063,873,734 shares, or 0.85% of GoTo’s 1,201,409,662,836 total shares, according to the firm’s earnings report as of March-end 2024.
The cancellation does not impact GoTo’s ongoing share buyback initiatives approved by the shareholders in June 2024.
In the same statement, GoTo also announced that it is seeking approval—an annual application to maintain flexibility—to increase its capital through non-preemptive rights share issuance.
“We are making this application to maintain flexibility should an opportunity that is in the Company’s interest arise or in the event that an unexpected change in the macroeconomic environment necessitates additional funding. We will continue to make this application every year, without necessarily executing on it, as we deem flexibility in this regard to be prudent,” Koesoemohadiani said.
GoTo had 23 trillion rupiah ($1.4 billion) in cash, cash equivalents, and short-term time deposits as of March 31, 2024. That was a nearly 16% drop compared with 27.4 trillion in the same period a year earlier.
GoTo shares dropped 1.82% to 54 rupiah apiece on Wednesday. The shares, however, rallied a day earlier to reach 55 rupiah apiece, the highest level since June 10, 2024.
GoTo is set to report its Q2 earnings on July 30.