GoTo shares continue to slide ahead of investors meeting

GoTo Group's share fell to another record low ahead of a meeting with investors Thursday afternoon, where the Indonesian internet company is expected to explain how it is affected by the slump.

Early backers were able to reduce their holdings because of the lockup on its major shareholders stakes at the end of November. The unprofitable company is meeting with investors at 2 p.m. Jakarta time in a session accessible online.

The ride-hailing and e-commerce provider faces increasing competition from rivals such as Grab Holdings Ltd. and a deteriorating global economy. Investors are assessing GoTo's prospects. The investors are advised to sell the stock, because GoTo is about six quarters away from a cash crunch, according to Aletheia Capital.

The stock plunged 6.5% in Jakarta trading, close to the daily limit, leaving it down 70% since its April debut. Indonesia's largest tech company now has a market value of $7.6 billion.

Early backers such as SoftBank Group Corp. and Alibaba Group Holding Ltd. were held by an eight-month lockup that ended on Nov. 30 to support the stock price following the company's initial public offering. GoTo's plan to facilitate controlled stake sales by pre-IPO backers - intended to avoid a bigger selloff at once - didn't come to fruition.

GoTo raised $1.1 billion in one of the largest IPOs this year, thanks to the merger of ride-hailing provider Gojek and e-commerce firm Tokopedia.