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The possible valuation of Telegram may reach $30-$50 billion.
It has become known that Telegram is considering the option to go public. The most expected period for it is 2023. Though IPO may be the most expected variant for Telegram, the company may prefer one of the other variants. For example, it may go public via a SPAC merger or to opt for a direct listing.
The possible valuation of Telegram may reach $30-$50 billion. This figure depends on the number of monthly users, with one user worth $50. As of January 2021, Telegram had 500 million users per month. As analysts are estimating, this number may increase to 800 million – 1 billion users.
At the current moment, Telegram is conducting pre-IPO studies and is working on finding the most appropriate region and platform for listing. According to sources, the most preferable options for the company are Nasdaq or Hong Kong stock exchange as over 40% of Telegram users are based in Asia. Moreover, this number is expected to continue its growth and it may reach even 50% in 2 years.
Possible Scenarios for Telegram IPO
According to those familiar with the matter, the most attractive option for Telegram shareholders would be direct listing that could bring liquidity without restrictions and high expenses. However, in this case, Telegram would face particular attention from the US Securities and Exchange Commission (SEC). Therefore, many believe that using a smaller Hong Kong Exchange would be better for Telegram.
Another option for Telegram to go public would be using a so-called Special Purpose Acquisition Company (SPAC). However, as analysts stated, Telegram has “outgrown” this mechanism.
Pre-IPO Sale of Telegram Bonds
In March 2021, Telegram raised as much as $1 billion with a convertible bond private placement. The bond was a 5-year convertible deal with a 7% interest payable per annum and the minimum entry amount pegged at $500,000. As Telegram founder Pavel Durov announced in his official Telegram channel, this sum included a $150M investment from Abu Dhabi-based sovereign investor Mubadala Investment Company as well as Abu Dubai Catalyst Partners.
At that time, Durov commented:
“We are honoured by the $150M investment into Telegram from Mubadala and Abu Dubai Catalyst Partners. We look forward to developing this strategic partnership to continue our growth in the MENA region and globally.”
This investment should be considered as a strategic partnership. Within this collaboration, Mubadala is anticipating benefits for Abu Dhabi’s startup ecosystem and advancing it by having a local Telegram presence drawing in skills and talent to the capital.