Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
If this falls true, Tokopedia will become the second behind PT Telekomunikasi Indonesia to have the dual listing combination of the US and Indonesia.
Tokopedia PT, an Indonesian e-commerce giant has been said to be in the process of reaching $10 billion in valuation after its dual listing decision involving about $1 billion in IPO was revealed. Two individuals who refused to identify themselves disclosed to the media that Tokopedia will certainly launch the dual IPO In the United States of America and Indonesia next year to become the biggest Southeast Asian startup listing overseas. If this falls true, Tokopedia will become the second behind PT Telekomunikasi Indonesia to have the dual listing combination of the US and Indonesia.
Tokopedia has been operating online stores, and according to reports, the plan for the dual listing is strategic as it seeks to get investors from the US with a strong interest in tech-related stocks. This will change the face of its brand and be seen as an international service provider. The listing is said to be subject to market conditions as disclosed by the unidentified persons charged not to leak this to the media. The idea of this strategy is to invest the money obtained from the listing for the generations of liquidity of its shares coupled with the expansion of its business.
Tokopedia refused to comment on this, but according to Reuters, the company referred them to the previous statement that states that they have not decided on any method or market for the options available after revealing that “indirect listing via a special purpose acquisition company was an option.”
A blank check acquisition firm solidly backed by Richard Li and Peter Thiel, an Asian tycoon and Silicon Valley investor respectively launched a merger approach to Tokopedia, but according to the report, they have not decided anything yet. They have previously raised about $2 billion from several companies which include Alibaba Group Holdings (HKG: 9988) Temasek Holdings, and SoftBank Group Corp (TYO: 9984).
Why the Dual IPO by Tokopedia
Etta Rusdiana Putra, a security analyst at Kresna Sekuritas noted that making its stocks only available to the Indonesian market will expose their offerings to a limited number of people. For this reason, it will be beneficial to have another listing on an International Stock Exchange to boost the number of investors. Also, the international community is more familiar with stocks than the local scene. When comparing the Indonesian Stock market to that of the US, Putra said that the difference has to do with the market value.
“The daily trading volume of the Indonesian stock market is only 8 trillion rupiah (about 568 million US dollars, 4.03 billion yuan), ” said Putra. The low market value of Indonesia limits the number of foreign institutions in the market.
Tokopedia has contributed so much to the Indonesian economy, and though they disclosed their dual listing decision about a year ago, they have decided to keep its related plans away from the public.