In a significant financial maneuver, PT GoTo Gojek Tokopedia Tbk (GOTO) has embarked on an extensive share buyback program, allocating substantial funds to repurchase its shares. This initiative, amounting to Rp1.79 trillion (approximately US$112.3 million) by April 2025, underscores the company's commitment to enhancing shareholder value and stabilizing its stock price.

Overview of the Share Buyback Program

The share buyback program was officially approved during the Annual General Meeting of Shareholders on June 11, 2024, with a maximum allocation of US$200 million (equivalent to Rp3.2 trillion) set aside for this purpose. The buyback period is scheduled to conclude on June 11, 2025. As of April 2025, GOTO has repurchased a total of 27.79 billion Series A shares, reflecting a proactive approach to managing its capital structure.

Objectives Behind the Buyback

The primary motivations for GOTO's share buyback include:

• Enhancing Shareholder Value: By reducing the number of outstanding shares, the company aims to increase earnings per share (EPS), thereby potentially boosting the stock's market value.
• Stabilizing Stock Price: In the face of market volatility, the buyback serves as a tool to support the share price and signal confidence in the company's future prospects.
• Optimizing Capital Structure: The repurchase allows GOTO to utilize its internal funds effectively, aligning with its broader financial strategy.

Market Response and Analysis

Despite the substantial buyback, GOTO's stock performance has experienced fluctuations. Analysts suggest that while buybacks can provide short-term support, long-term stock performance depends on fundamental business growth and profitability. Investors are closely monitoring GOTO's operational metrics and strategic initiatives to assess the company's trajectory.

Future Outlook

With the buyback program ongoing until June 2025, GOTO has the opportunity to further influence its share price and investor perception. The company's ability to execute its business plans and achieve financial targets will be crucial in determining the long-term success of the buyback initiative.