GoTo Group has announced that it intends to raise more capital through a private placement.

This was revealed by the firm in the disclosure of information on the Indonesia Stock Exchange (IDX).

The Indonesian tech giant is set to issue a maximum of 118.44 billion shares which is around 10% of its current paid-up capital through the placement.

The private placement implementation is pending approval from shareholders at the annual general meeting that will be held on 28 June 2022.

If the proposal is approved, the private placement will take place within 1 year after the meeting.

The price of the new shares should be at least 90% of GoTo's average closing share price on the IDX for 25 consecutive trading days before the date of application for additional shares.

Based on the closing price of GoTo last Friday which is IDR 304 (~US$0.021), the private placement would be valued at US$2.5 billion if it goes through.

The company said in a statement that the funding would be used to support its own working capital and also its subsidiaries such as Tokopedia and GoPay.

GoTo Group is a merger between two of the country's largest start-ups: Gojek and Tokopedia.

Early April, GoTo Group debuted on the IDX after raising around US$1.1 billion in an IPO by selling around 4% of its shares.