GOTO - Pools USD150 mn from private placement

GOTO - Pools USD150 mn from private placement Gojek Tokopedia (GOTO) has carried out a private placement through issuance of 17.04bn of Series A shares, or equivalent to USD150 mn or IDR90 apiece that is absorbed by an independent entity, Bhinekka Holdings. Following the corporate action, GOTO is to issue debt paper, notes subscription agreement through its overseas subsidiary, GoTo International Finance Limited. As much as 25% of private placement proceeds will be earmarked for GOTO, 15% of which will be for Tokopedia, Swift Logistics, Dompet Anak Bangsa, Multifinance Anak Bangsa and Multi Adiprakarsa Manunggal. (Source : Bisnis Indonesia) Comment : We perceive this corporate actions positively as a means to strengthen its position in the industry, especially in fintech service. Amid growing number of players, we are sanguine that GOTO through its fintech arm, Gopay as well as its lending products has remarkable competitive edges compared to peers, banking on its strong synergy with other services especially GoJek, superior AI and partnership with ARTO. Meanwhile, high unbanked and unbankable population should mean a leeway to grow going forward.