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Hello readers,
When the term “IPO” is brought up, ringing the bell at the New York Stock Exchange is probably the first thing that comes to mind. Even if you bring things a little closer to home in Asia, Hong Kong is the exchange of choice. But what about the Indonesian Stock Exchange (IDX)?
With dual listings now being a viable option for many companies – Gojek and Tokopedia are apparently considering it – maybe more Indonesian startups will think about going the homegrown route.
(Also, “IDX” is a pretty rad-looking acronym in my opinion.)
Today we look at,
- The case for Indonesian tech companies to get listed on the IDX
- Deliveroo packing in more funding into its pouch
- Other newsy highlights such as the delay of WhatsApp’s new privacy policy and confirmation of jail time for Samsung’s heir
PREMIUM SUMMARY
Keeping things local
An IPO for an Indonesian tech giant seems to be on the cards this year – Tokopedia, Gojek, Traveloka, and Bukalapak are a few prominent examples. Pandu Sjahrir, commissioner of Sea Group and the Indonesian Stock Exchange (IDX), thinks that local retail and institutional investors will welcome internet companies to the IDX as they’ve been salivating at the prospect of putting money in tech.
- Success stories: Tourism marketplace startup Pigijo was able to raise US$850,000 via its IPO in January 2020, while payments startup Cashlez pocketed US$6.2 million when it went public in May 2020.
- Transformation: The growing number of listed tech firms in Indonesia marks a change from an old economy dominated by banking, oil and gas, and fast-moving consumer goods firms.
- Not for a quick buck: Sjahrir cautions that companies shouldn’t list in haste. Instead, startups should get their fundamentals right before considering it. VCs can provide this mentoring function, advising on business models as well as corporate structure and governance, among other things.
Read more: Sea Group commissioner: Why now is the time for local unicorns to IPO
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