GoTo Gojek 2.3 Trillion IDR Private Placement Strategic Capital Boost

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PT GoTo Gojek Tokopedia Tbk. (GoTo), a well-known technology company, is raising a lot of funds to bolster its finances and make its expansion goals easier. The company plans a private issue of 17.04 billion Series A shares to raise IDR 2.3 trillion, or USD 150 million.

GoTo Funding Details

To fund itself, GoTo will issue 17.04 billion Series A shares at IDR 90 each. The notification to the Indonesia Stock Exchange (BEI) claims that Bhinneka Holdings (22) Limited, a Cayman Islands-incorporated company, will exclusively acquire these shares. The Indonesia Stock Exchange was notified.

How Money Was Used in GOTO Gojek :

The estimated IDR 2.3 trillion from the private placement is expected to strengthen GoTo’s finances. Through the issuing of additional shares, the business expects to gain IDR 1.53 trillion, or $100 million USD. GoTo International Finance (22) Limited, a wholly-owned foreign subsidiary, would also issue international bonds to diversify its funding sources. This will support the preceding point.

Bhinneka Holdings’ Involvement:

In particular, Bhinneka Holdings helped GoTo issue equity-linked bonds to raise funds. Capital raised by selling these bonds. Franke & Company-controlled International Finance Corporation and WAF Investments Cayman LLC financed this project. This strategy secured $150 million in finance.

Proceeds Distribution:

The cash distribution carefully prepared based on the preceding private placement announcement. GoTo will receive 25% of the funds raised, while PT Tokopedia, Swift Logistic Solutions, Dompet Anak Bangsa, Multifinance, and Multi Adiprakasa Manunggal would each receive 15%. The company receives 25% of funds raised.

Finance-related GoTo Instruments and Agreements

Notes on Subscription Contract:

GoTo International Finance (GTIF) will issue debt instruments concurrently with the Private Placement based on the October 2, 2023 Notes Subscription Agreement. The agreement names GTIF the issuer, GoTo the guarantor, Bhinneka Holdings the participating entity, and Citibank, N.A., Hong Kong Branch the custodian. GTIF will also buy a cash-settled call option from Bhinneka Holdings.

Post-tax Earnings:

The GTIF expects a USD 50 million net profit from these financial operations. This investment strengthens GoTo’s finances and supports its strategic goals.

Shared Movement Context and Direction:

This fundraising campaign follows GoTo’s announcement that company would offer new shares through a private placement. The corporation first requested shareholder approval in June at its annual shareholder meeting. GoTo then modified the shareholder proposal to emphasize its intention to using the money to develop its commercial activities and strengthen its capital structure.

GoTo Market Predictions and Analyst Opinions

Short-term Stock Market Changes:

If it stays over IDR 83 as a stop loss, MNC Sekuritas analyst Herditya Wicaksana says GoTo’s stock could rise in the short run. GoTo’s stock has shown strength in the past, which informed Herditya Wicaksana’s analysis.

Technical-type Analyses:

MNC Sekuritas analysts found a stochastic indicator golden cross during technical investigation. This suggests GoTo will rise. The business advises buying GoTo shares at a target price of IDR 97 to IDR 107 per share.

Analyst Suggestions about GoTo:

Bloomberg Terminal shows that most analysts like GoTo Gojek. 19 of 30 analysts recommend buying shares, 9 recommend selling, and 2 are indifferent. Analyst Etta Rusdiana Putra of Maybank Sekuritas suggests buying the company’s shares at IDR 153 per share. This confidence is founded on the premise that it can maximize its strategic position during the IT sector slump. Market trends match the company’s objective to maximize profitability and operational efficiency.

Maybank Sekuritas respects GoTo’s market leadership and long-term growth potential. And then, GoTo points to its unique position in supporting Indonesia’s growing middle class. It expected to number 55–60 million people, making it a major player in the country’s quickly changing technological environment.