GoTo Group Faces Potential Removal From MSCI Indexes

GoTo Group, the Indonesian ride-hailing and food delivery platform, faces potential exclusion from MSCI Inc. indexes during a review scheduled for Wednesday evening in New York. The company's share price has remained at a 50 rupiah floor for approximately three months, creating liquidity issues that have led asset managers to complain about their inability to trade the stock.

Once valued at over $32 billion, the company has struggled with heavy losses and competition from rivals such as Grab Holdings Ltd. While MSCI previously froze changes for GoTo in May due to replicability issues, the lack of progress in removing the price floor has increased the likelihood of deletion from the indexes.

Chief Executive Hans Patuwo has vowed to turn around the company. To address the decline, he has proposed a potential reverse stock-split and share buybacks of up to 3.5 trillion rupiah.