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Indonesia’s GoTo nearly hit limit in stock stabilisation scheme – Metro US

Indonesia’s GoTo nearly hit limit in stock stabilisation scheme

FILE PHOTO: A Go-Jek driver rides a motorcycle on a
FILE PHOTO: A Go-Jek driver rides a motorcycle on a street in Jakarta, Indonesia

JAKARTA (Reuters) – A total of 6 billion shares of Indonesia’s largest tech firm PT GoTo Gojek Tokopedia have been bought as of Friday, under a scheme to stabilise its share price, the company said in a filing to the Indonesian Stock Exchange.

To avoid sharp drops in its stock price, GoTo has put in place a greenshoe option scheme where a “stabilisation agent”, broker PT CGS-CIMB Sekuritas Indonesia, was appointed to buy a maximum of 6.09 billion shares from the market should the price hit or drop below the IPO level of 338 rupiah per share.

Amid weaker Asian stocks this week, GoTo triggered such transactions for three days straight from Wednesday.

On Friday, CGS-CIMB Sekuritas bought 3.46 billion shares at an average price of 336.27 rupiah per piece, according to GoTo’s filing, taking the three-day total to 6 billion shares or 98.5% of the allotted amount.

On Friday, GoTo’s shares fell as low as 330 rupiah per share, before closing the day at 340 rupiah.

The company debuted on April 11 after raising $1.1 billion in the world’s fifth-largest initial public offering this year, selling only 4% of its shares at 338 rupiah a piece.

(Reporting by Stefanno Sulaiman; Editing by Fransiska Nangoy and Kanupriya Kapoor)

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