These two deals kicked off a series of IPOs of Southeast Asia’s most valuable startups, from Grab’s rival Gojek and popular e-commerce company Tokopedia to Singapore’s PropertyGuru. Thereby, investors have the opportunity to bet on the boom of Southeast Asian technology startups in the post-Covid-19 context.
This is also an opportunity for the Internet industry to show power in the corporate landscape of Southeast Asia, where financial institutions and industrial groups have dominated the past. In the longer term, observers expect tech companies to continue to hold the same appeal as they do in China and the US.
“We’ve seen a similar trend in more developed markets, now it’s the golden age of Southeast Asia,” commented Rajive Keshup, director of Cathay Capital, which manages $4 billion in assets. “These trades will bring a lot of capital into Southeast Asia, and it’s a very good indicators of the health of the regional economy.”.
In Southeast Asia, which accounts for about one-10th of the world’s population and has the world’s fastest growing economies such as Indonesia, the tech industry is still significantly below its potential. Home to the world’s fastest growing number of smartphone users, with strong economic growth momentum and policies to encourage investment in technology, the region still has no major technology companies listed until Sea becomes a public company in 2017.
With the potential of Southeast Asia, many international corporations such as Amazon of the US or chinese big players such as Tencent and Alibaba have approached this market, considering Southeast Asia as the key to achieving global ambitions.
Part of the reason is from external factors. Cash flow is leaving the Chinese tech giants since Beijing last year launched its campaign to reduce influence. Tensions between the US and China also affect Chinese companies that are listed on US stock exchanges. At the same time there are concerns about technology stock bubbles.
However, the biggest reason is that investors believe in the potential of Southeast Asian technology companies. A study by Google, Temasek and Bain forecasts that by 2025 Southeast Asia’s internet economy will triple, with a scale of more than 300 billion USD.
To be able to capitalize on investor excitement faster, many still-losing startups like Grab and Traveloka choose to list through SPAC companies. That way, they can go public in just a few weeks, compared with the 12-month period to complete the IPO process the usual way.
And perhaps they were also attracted by the spectacular growth of Sea shares. Among companies valued at $ 100 billion or more, Shopee’s parent company has emerged as Asia’s biggest gainer since the beginning of last year and is second only to Tesla globally.
Gojek and Tokopedia, two of Indonesia’s most valuable technology startups, are seeking investor approval to conduct M&A and create Indonesia’s largest internet company before a dual IPO.
Source: ndh.vn – Translated by fintel.vn