- GoTo plans massive 120B share issuance, bolstering capital across businesses.
- Separate $200M buyback program also in the works after EBITDA surged.
- Tech giant shores up finances through equity moves, eyes profitability.
Share-ity begins at home
Indonesian tech giant GoTo unveils plans to issue a mammoth 120.14 billion Series A shares – a whopping 10% of its total issued and paid-up capital. This private placement aims to bolster working capital, tackle debt.
35% of proceeds head straight to GoTo’s coffers. Fintech arm GoPay secures 20%, while 25% lands at Multifinance Anak Bangsa.
GoTo Solusi Niaga (formerly Multi Adiprakarsa Manunggal) and the groceries biz split the remaining 20%.
Buy one, get one free (shares)
Separately, GoTo eyes a $200 million share buyback – its inaugural repurchase post the TikTok Shop ecommerce deal.
Not exceeding 10% of outstanding shares, including treasury stock.
The share maneuvers follow an 89% yearly adjusted EBITDA surge in Q1 2024. GoTo remains confident of sustaining adjusted EBITDA profitability throughout 2024.
To read the original article: https://www.techinasia.com/goto-seeks-private-placement-10-capital
