Shares of Indonesia's GoTo extend fall as analysts warn on tech valuations

JAKARTA, April 27 (Reuters) - Shares of Indonesia's biggest tech company PT GoTo Gojek Tokopedia Tbk (GOTO.JK) closed at 290 rupiah a piece on Wednesday, down more than 14% since its debut this month, as analysts warned of a risk of further falls.

GoTo debuted on April 11 after raising $1.1 billion in an initial public offering by selling around 4% of its shares at 338 rupiah each. read more

But investors have mostly been selling since then, sending the share price down 6.45% on Wednesday, the maximum level allowed, to a fresh low of 290 rupiah.

"Investors... don't know for sure the prospects and valuation of GoTo shares," said Maximilianus Nico Demus, associate director of research and investment at securities firm Pilarmas Investindo Sekuritas.

Hans Kwee, a director at investment firm Anugerah Mega Investama, said selling had also accelerated after the stock failed to sustain a rally after the IPO, peaking at 442 rupiah.

GoTo had put in place a mechanism to try to prevent share prices falling below its IPO price, in which broker PT CGS-CIMB Sekuritas Indonesia would buy dumped shares to shore up prices. read more

In a stock exchange filing on Wednesday, GoTo said it has maxed out the buying limit under that scheme.

GoTo did not respond to a request for comment.

Separately, GoTo also announced it had bought new shares worth 2.62 trillion rupiah ($181.69 million) from its e-commerce unit Tokopedia, the majority of which will be to provide the subsidiary with additional working capital ahead of the Eid Al-Fitr festivities.

Reporting by Stefanno Sulaiman Editing by Ed Davies, Kanupriya Kapoor

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