GoTo Shares Plunge 14% After Indonesia Removes Price Floor

GoTo shares plunged 14% to 43 rupiah in early Jakarta trading on September 28 after the Indonesia Stock Exchange removed the 50-rupiah price floor. The stock had remained stagnant at that minimum for approximately four months.

The exchange eliminated the floor as part of a regulatory effort to increase market liquidity. This move follows a January warning from MSCI regarding a potential downgrade to frontier status due to investability concerns. Although the company reported its second consecutive quarterly profit in July, MSCI removed GoTo from its stock indexes last month because the company failed to meet liquidity requirements.

Since its April 2022 listing, which saw a market capitalization exceeding US$32 billion, the ride-hailing and food-delivery platform has faced heavy losses and intense competition from Grab Holdings.