Indonesia’s PT GoTo Gojek Tokopedia said it has sold its stake in local retailer Alfamart worth US$96.03 million, days after the tech firm announced its strategy to focus on accelerating profitability.
The announcement comes at a time when GoTo shares are trading at record low levels.
The expiry of an eight-month lock-in period for pre-IPO shareholders followed by some of them deciding not to take up a secondary offering meant shares plunged nearly 55 per cent in the last two weeks, wiping out nearly $8.8 billion in market value.
GoTo is the result of a merger between ride-hailing to payments company Gojek and e-commerce leader Tokopedia. Since going public in April, GoTo has lost more than $23 billion in market value and is trading at $0.006 – 72 per cent below the IPO value of $0.022. [Indonesia’s GoTo posts net loss, warns of volatile market]
GoTo, which logged a narrower loss in the third quarter, aims to prioritise profitability, consider shaving off non-core assets and investment, and not make any “new investments that do not contribute to the acceleration of profitability”.
“Alfamart has performed strongly, providing us with an opportunity to realise a significant gain on our minority investment,” said Jacky Lo, GoTo’s chief financial officer.
- Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman, of Reuters.
