GoTo Approaches Alibaba and SoftBank To Help Salvage Stock Crash - Alibaba Gr Holding (NYSE:BABA), SoftBank Group (OTC:SFTBY), Goto Gojek Tokopedia (OTC:GTOFF), SoftBank Group (OTC:SFTBF)

Indonesia’s largest tech company GoTo Gojek Tokopedia PT Tbk GTOFF, discussed a controlled sale of $1 billion stakes with its significant owners to avoid a stock crash on the lock-up expiry in November.
GoTo gauged the interest of early backers, including Alibaba Group Holding Limited BABA and SoftBank Group Corp SFTBF SFTBY for a managed sale of some of their shares to new investors, Bloomberg reports.
Alibaba holds about 8.8% of GoTo, and SoftBank’s stake is about 8.7%.
Also Read: SoftBank Expects Windfall Gain of $34B From Alibaba Stake Sale: Report
GoTo discussed with some investors to get them to commit to keeping their shares for a further period of up to six months.
Many significant shareholders agreed to hold their stakes for at least eight months following the company’s initial public offering in late March.
“GoTo’s plan to manage share-price volatility by engaging early investors such as Alibaba and Softbank to sell down their shares could help prevent a sharp correction,” Bloomberg analyst Nathan Naidu said.
GoTo has engaged Citigroup, Inc C and Goldman Sachs Group, Inc GS to help manage the potential selldown.
Formed via a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, GoTo raised $1.1 billion in one of the world’s largest IPOs this year.
After an initial surge following the debut, GoTo shares have reduced gains to trade about 40% below the IPO price.
GoTo is a leading internet company in Indonesia whose mobile-savvy consumers shop on Tokopedia’s platform and order rides and food via Gojek’s app.

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