What would a public listing do for Grab, Gojek, and Tokopedia?

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Hello readers,

Like many people in Singapore, Carousell is my go-to platform for selling secondhand items, like pre-loved clothes or that old sofa my father wanted to get rid of. Before listing an item on Carousell, I’ll usually take a look at similar items on offer to figure out what number I should put on the price tag.

A similar logic holds when we’re talking about startup valuations. And now that several of Southeast Asia’s unicorns are contemplating public listings, investors are looking at other similar companies on the market in order to get a sense of what they’re worth.

Today we look at,

• How going public could drive up the valuations of Southeast Asia’s unicorns
• An Indian fintech firm’s plans to tackle cross-border transactions
• Other newsy highlights such as JD Logistics’ spin-off and the surge in TikTok’s advertising business in the US

PREMIUM SUMMARY

Will an IPO send the valuations of Southeast Asia’s unicorns sky-high?

With several of Southeast Asia’s unicorns mulling initial public offerings, all eyes are on what the move will do for the valuations of these companies. A big unknown with any listing is how the public markets will value these companies and how far this will diverge from private valuations – something that could impact investors, founders, employees, and the region’s tech scene as a whole.

• The timing is right: US investors are taking a strong interest in emerging market technology companies. Sea’s phenomenal performance in New York could bode well for Southeast Asia’s tech unicorns, as investors like to use similar companies as a reference point.
• Big bucks: According to Tech in Asia’s analysis, current public market valuations should result in Grab, Gojek, and Tokopedia enjoying a significant multibillion-dollar premium to their latest private market valuations.
• The luck of the draw: However, numerous factors – sector, geography, size, managerial talent, cash reserves, profitability, and even plain luck – can have an impact on the valuation of these startups at IPO. And at the end of the day, a company’s valuation at IPO is only one facet of its entire story.

Read more: Going public may boost Grab, Gojek valuations by billions

PREMIUM SUMMARY

Crossing financial borders