Jakarta, CNBC Indonesia – The stock price of PT GoTo Gojek Tokopedia Tbk (GOTO) was observed to have weakened 1.8% at the level of Rp. 334/share this morning, Monday (25/4/2022).
GOTO’s share price is now below its public offering price (IPO) which is set at Rp 338/share.
The pressure on GOTO’s shares has actually been felt since April 19. GOTO’s shares fell 5.29% and closed at Rp. 358/share.
A day later, GOTO’s stock price plunged again. On Wednesday (20/4/2022), GOTO’s share price closed down 5.59% at the level of Rp. 338/share or its IPO price.
As is well known, during the IPO, GOTO also plans to implement a price stabilization scheme so that its share price does not fall below the IPO price.
Here GOTO appoints a stabilizing agent, namely PT CGS-CIMB Sekuritas Indonesia. Through a mechanism known as the greenshoe option, GOTO has prepared a stabilization fund of Rp 2.05 trillion, equivalent to 6.09 billion shares.
In simple terms, the stabilization mechanism is carried out if there is a massive selling action that makes the stock price fall close to the specified level.
In the case of GOTO, CGS-CIMB Sekuritas will immediately buy up its shares when the price drops close to the IPO level.
The price stabilization mechanism began to be carried out by CGS-CIMB on April 20, 2022. At that time CGS-CIMB Sekuritas Indonesia reported buying 1.22 billion GOTO shares at a price of Rp 338/share and disbursing Rp 413.2 billion.
The massive selling action forced CGS-CIMB to re-accommodate a large number of GOTO shares. On April 21, 2022, CGS-CIMB Sekuritas Indonesia was observed to have bought up 2.54 billion shares of this decacorn startup from Indonesia at an average price of Rp 337.99/share.
The accumulated purchase value of the total available funds reached Rp 857.8 billion or 41.66% of the target number of shares to be purchased.
However, thanks to this stabilization action, GOTO’s share price was able to stay above its IPO price. However, the onslaught of GOTO shares continued.
The peak was in the last trading last week. Even though it closed again above the IPO price, the pressure on GOTO’s shares had forced CGS-CIMB Sekuritas to pour out stabilization funds again very massively.
It was observed that on April 22, 2022, the total purchased shares of GOTO reached 6 billion or 98.5% of the target, and the total stabilization funds used reached Rp 2.02 trillion.
This means that there are very few funds available for price stabilization. In the event of massive selling pressure on GOTO’s shares, it is very possible that in the end the price of GOTO’s shares will close below the IPO price.
CNBC INDONESIA RESEARCH TEAM
(vap/vap)
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