GoTo Group shares tumbled after Indonesia’s stock exchange eliminated its 50-rupiah price floor, unleashing pent-up selling pressure. The ride-hailing and food-delivery platform’s stock fell 14% to 43 rupiah in early Jakarta trading, pushing its market capitalization below $3 billion. The share price had been stuck at 50 rupiah for about four months.

The price floor, in effect for over a decade, is uncommon among major markets. Investors have complained that stocks at the minimum price floor can become effectively untradable. Wilbert Arifin, an analyst at Mirae Asset Sekuritas Indonesia, noted the next few months will test whether the selloff is technical or reflects fundamental concerns.

The removal of the price floor aligns with broader regulatory efforts to improve liquidity, following MSCI Inc.’s warning of a possible downgrade to frontier status. Currently, more than a hundred stocks in the Jakarta Composite Index are trading at or below the 50-rupiah level. GoTo, backed by Alibaba Group Holding Ltd., was once one of Indonesia’s most valuable companies, with a market capitalization topping $32 billion in April 2022.

However, years of heavy losses due to competition against rivals like Grab Holdings Ltd. have affected investor sentiment. Despite restructurings and leadership changes leading to a second straight quarterly profit in July, enthusiasm remains low. The company stated there is a disconnect between its current share price and the strength of its underlying business, remaining focused on strengthening performance.

MSCI removed GoTo from its stock indexes in its last quarterly review due to liquidity requirements.