Grab joins five other regional startups gunning for IPO

SINGAPORE-BASED Grab is reportedly mulling an initial public offering (IPO) in the US this year , in an exercise that could raise at least US$2 billion. It joins a handful of other prominent regional startups aiming for the public markets. 

Most recently valued at a reported US$14 billion, Grab is present in eight South-east Asian markets, with verticals including ride-hailing, food delivery and financial services under Grab Financial Group. The firm also clinched a full digital banking licence in Singapore in partnership with Singtel. 

Grab’s plans have not been finalised and depend on market conditions, Reuters reported on Monday, citing sources. Nevertheless, this adds to the growing buzz around potential tech IPOs among a maturing crop of venture-backed South-east Asian firms.

These aspirants may be taking a cue from New York-listed Sea, whose shares have been on a tear amid the pandemic. Over the past year, Sea’s share price has grown over four times to US$226.05 as at Jan 5. The firm also recently raised US$2.57 billion in an upsized stock offering. 

Here is a closer look at other South-east Asian startups that want to head for the public markets. 

1. Tokopedia (and Gojek)

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Grab’s reported IPO ambition comes as merger talks with archrival Gojek reportedly hit an impasse. Instead, Gojek is said to be in talks with e-commerce player Tokopedia to pursue an US$18 billion merger, Bloomberg reported earlier this month. 

If the merger goes through, they may list the combined entity in the US and Indonesia. Gojek is reportedly valued at US$10.5 billion. Tokopedia, backed by SoftBank's Vision Fund and Alibaba, is said to be worth US$7.5 billion.

Observers told The Business Times that a Gojek-Tokopedia merger could be an attractive proposition, given the diverse mix of businesses. 

Even prior to the Gojek-Tokopedia merger report, Tokopedia itself had expressed IPO hopes. In mid-December, the firm confirmed that it was considering to accelerate plans to go public, and had appointed Morgan Stanley and Citi as advisors. 

Tokopedia had reportedly received a merger offer Bridgetown Holdings, a special-purpose acquisition company (Spac) backed by billionaires Richard Li and Peter Thiel.

2. Traveloka

Online travel app Traveloka similarly plans to go public and is exploring a merger with a Spac as a possible option, the Indonesian firm told the media in December. A source cited by Reuters said that the firm is looking at a valuation of between US$5 billion and US$6 billion. 

Founded in 2012, Traveloka claims to have over 60 million downloads. It announced that it had raised US$250 million back in July 2020 to bolster operations amid Covid-19 travel restrictions. 

Back in 2019, Traveloka chief executive Henry Hendrawan had told Reuters that the firm would consider a dual listing, with one market being Jakarta, and the other possibly the US. 

3. Prestige Biopharma

Singapore-based Prestige Biopharma is currently pursuing an IPO on the Korea Exchange, with a targeted listing early this year, the firm's chief executive Lisa Park told The Business Times in December.

Founded in 2015, Prestige Biopharma specialises in the development of antibody therapeutics such as biosimilars - copies of certain types of drugs that can treat diseases.

Prestige Biopharma's Singapore-registered entity had been fully acquired by the Korea Securities Depository, as shown in Dec 8 regulatory data.

The company was last valued at US$826.9 million after raising US$71.5 million in a Series B round. This puts it near a US$1 billion valuation, or so-called unicorn status.

4. M-DAQ

Ant Group-backed M-DAQ could go ahead with an IPO as soon as this year. While pinning down the exact timing is a “challenge” in the current state of flux, chief executive and co-founder Richard Koh told BT in November a listing is still expected this year or the next.  

Mr Koh said M-DAQ has raised S$82 million in equity and started 2020 with S$56 million in reserves. It previously raised a pre-Series D round from South Korea's Samsung and Japan's Nippon Telegraph and Telephone (NTT) in November 2019.

The startup claims to have enjoyed 10 successive quarters of net profit, and is now exploring new revenue streams through partnerships.

5. JustCoGIC-backed coworking operator JustCo plans to undertake an IPO at some point, although it has not specified an exact timeline. Potential IPO destinations include Singapore, the US, Hong Kong and Australia.

“I will make Singapore proud; you will know that day very soon," chief executive Kong Wan Sing cryptically told BT in December, when asked about the timing. He confirmed that the company’s valuation stands at US$1 billion. 

In any case, JustCo is forging ahead with its global expansion plans this year, and is set to launch its own facility in Tokyo, while moving towards an asset-light business model.

READ MORE: Asean fintechs may list in US market on dual-listing track