Indonesia tech firm GoTo seeks approval to issue up to 118.44bln shares

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FILE PHOTO: Gojek driver helmets are seen during Go-Food festival in Jakarta

JAKARTA (Reuters) - Indonesia's biggest tech company PT GoTo Gojek Tokopedia Tbk is seeking approval to issue a maximum amount of 118.44 billion of shares worth around 10% of its total capital through a private placement.

The private placement will be put forward for shareholder approval at GoTo's annual general meeting on June 28th, it said in a disclosure to the Indonesia's stock exchange on Friday.

A GoTo spokesperson said on Tuesday the move is administrative and has been highlighted in its IPO prospectus.

"It is common market practice in Indonesia to carry out an annual administrative process that renews previously granted approval for the option to conduct non-preemptive issuances. It does not mean we intend to carry out such an issuance at this point in time."

The tech company seeks to raise funds to support its own working capital and for its subsidiaries like its e-commerce unit Tokopedia, according to the statement.

The price of the new shares shall be at least 90% of the average closing price of GoTo's shares for 25 consecutive trading days prior to the date of application for the additional shares, it said.

Shares of GoTo closed at 304 rupiah per share on Friday or down 10% from its IPO price of 338 rupiah.

GoTo debuted on April 11 after raising $1.1 billion in an initial public offering by selling around 4% of its shares.

($1 = 14,669.0000 rupiah)

(Reporting by Stefanno Sulaiman; Editing by Kanupriya Kapoor)