Indonesia’s GoTo to sell stake in retailer Alfamart to focus on profitability

Indonesia’s PT GoTo Gojek Tokopedia has sold its stake in local retailer Alfamart worth US$96.03 million to focus on profitability.

GoTo shares are trading at record-low levels.

After pre-IPO owners elected to participate in a secondary offering, shares fell by almost 55 percent in the last two weeks, wiping out almost $8.8 billion in market value.

Gojek, a leader in taxi-hailing and payments, and Tokopedia, a leading name in online shopping, have combined to form GoTo. GoTo has lost more than $23 billion in market value since coming public in April, and its current share price of $0.006 is 72 percent less than its initial public offering price of $0.022.

GoTo, which reported a smaller deficit in the third quarter, intends to put profitability first, explore selling non-core assets and investments, and refrain from making any "new investments that do not contribute to the acceleration of profitability."