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Weekly News of 18th of April

Shares of Indonesia tech firm GoTo slide to IPO price level


Shares of Indonesia’s largest tech firm PT GoTo Gojek Tokopedia closed 5.59% lower at 338 rupiah per share, returning to its IPO price and triggering a stabilisation measure on its seventh day trading, reports Reuters.

GoTo had risen as much as 1.67% earlier on Wednesday before erasing its gain. The firm debuted last week after raising $1.1 billion in the world’s fifth-largest initial public offering this year, selling only 4% of its shares

GoTo had put in a place a scheme to avoid a big drop in its share price during its debut month.

PT CGS-CIMB Sekuritas Indonesia was appointed as “stabilisation agent” to buy up shares from the market should the price hit the IPO level of 338 rupiah or below.

GoTo reported in a stock exchange filing that the stabilisation measure was triggered on Wednesday. A total 1.22 billion shares were bought at 338 rupiah, according to data by brokerage house CGS-CIMB Sekuritas, which was attached to the filing.

The greenshoe option was set for a maximum 6.09 billion shares, according to GoTo’s IPO prospectus.


EV battery maker Italvolt’s CEO to launch company for building gigafactory


Electric vehicle battery maker Italvolt’s founder announced he would launch a company to build a battery-manufacturing gigafactory in California that could serve about 650,000 EVs a year with an expected outlay of $4 billion.

The United States is among many countries encouraging indigenous production of batteries and its materials in a bid to simplify supply chains for the booming EV industry.

The new company, Statevolt, which will build a 54 gigawatt hours (GWh)factory in southern California’s Imperial Valley, also signed a letter of intent with renewable energy and lithium extraction company Controlled Thermal Resources (CTR) to purchase the mineral and geothermal power.

The company’s hyper-local business model will offer Statevolt “a significant advantage in producing lithium-ion batteries at scale”, Lars Carlstrom, Italvolt’s founder and chief executive, said in a statement.

Prices of lithium have soared over the past year as demand for the EV battery material rise, exacerbated by the Russian invasion of Ukraine.

CTR extracts lithium from brine, a byproduct of geothermal energy, from its Hell’s Kitchen lithium and power project in California.

Statevolt is undertaking due diligence to determine the best location for the factory.


Mexico’s e-commerce gig app Zubale eyes Brazil, Chile in $40 million expansion


Mexican e-commerce startup Zubale, which pairs gig workers with storefronts or warehouses to complete packaging or deliveries, is eyeing an expansion to Brazil and Chile as a part of a $40 million Series A funding round, announced this week.

The round, led by venture capital group QED Investors which also backed Mexico’s Konfio last year, follows a series of pre-seed funds totaling $8 million.

A play on words for the Spanish “subale,” meaning “hop on” or “raise up,” the name Zubale comes from the startup’s mission to “(empower) people who have a smartphone to connect to our marketplace,” founder Allison Campbell told Reuters.

The company instantly matches temporary workers with businesses needing labor for storage, packing and delivering orders for supermarkets, retailers or restaurants.

In a market that analysts say could be worth $200 billion by 2025, “retailers are under pressure,” Campbell said. Customers in Latin America now expect an “incredible experience in their digital channel offered by applications,” she said.

Zubale started out of Mexico in 2019 and is looking to rapidly grow in Latin America, where it already has operations in Colombia, Costa Rica and Peru. It says it plans to launch in Brazil and Chile in the first half of 2022.

Campbell says the advantage of Zubale for storefronts over its competitors is brand recognition – customers will not have to use a third-party app like Rappi or Cornershop to order.