Turn Kredivo Reportedly Explore SPAC; Awaiting Proof of “Go-Public” Indonesian Technology Giant

Company fintech paylater Kredivo reportedly considering options go public on the New York stock exchange through SPAC. The company plans to cooperate with one of the units of Victory Park Capital, an investment company that also provides facilities debt funding to Kredivo worth $100 million in November 2020.

This news was first reported by Deal Street Asia. When we contact, the executive Kredivo declined to comment on the rumours.

From the existing funding round, the current estimated valuation Kredivo hit the $500 million mark. Investors Kredivo including Singtel Innov8, Telkomsel Innovation Partners, MDI Ventures, Cathay Innovation, DST Partners, and Kejora Intervest.

While the blank check company to be partnered with is estimated to have a value of up to $255 million.

Plan go public keep rolling

Not so long ago, plan go public Tiket.com has resurfaced. Companies that have now valued at more than $1 billion The company is reportedly also considering SPAC to be its vehicle for listing on the stock exchange. Rumor has it that they will cooperate with the blank check company COVA Acquisition Corp. (COVA), forming a combined company worth more than $2 billion.

In addition, in a statement quoted coil, GoTo CEO Andre Soelistyo said the joint company Gojek-Tokopedia is also targeted to be listed on the stock exchange before the end of 2021.

And as previously noted, unicorn It has also been reported that Traveloka and Bukalapak are starting to explore options go public with a SPAC vehicle.

The popularity of SPAC arises because the conventional IPO process is considered more complicated, expensive, and more time-consuming for technology startups. In the United States, 2020 is a significant growth momentum go public through a blank check vehicle. There are more than 200 SPACs raising approximately $799 billion.

However, currently there is a decline in SPAC prices and institutional investors' interest in entering PIPE; it is possible for startups to rethink go public through this mechanism.

Partners Withersworldwide Joel Shen thinks, the resurgence of SPAC's popularity can be attributed to low interest rates, abundant liquidity in the market due to the stimulus from the US central bank system, and an increase in the number of acquisition targets, especially in technology.

Waiting for proof

The plan is still just a plan, even the above companies have not openly discussed or acknowledged the SPAC. Some have already given a signal to immediately conduct an IPO.

If these market-leading startups can succeed with SPAC, this will be a good barometer and benchmark for the ecosystem. One of them is related to the company's acceptance on foreign exchanges, even though its business is focused on the local [regional] market.

In his analysis, Gabriel Li as an expert from Withers KhattarWong Singapore said, currently the [global] public market has show desire to invest in Southeast Asian tech startups. Sea Group's success brings business E-commerce, video game, and payment is said to be one of the initial triggers. Investments in Southeast Asian or Indonesian companies are seen as complementary for most investors.

Investors in the capital market, the government, and even the general public are now waiting for the concrete steps of the tech giants to take the floor to the stock exchange. The hope is that, treading carefully, local startups can really provide the best performance so that they can be used as outstanding examples for innovators who are crawling in the same direction.

Capital market in Indonesia

Hearing the news that the unicorn plans to hold a public offering, the Indonesia Stock Exchange (IDX) does not remain silent. Various adjustments were made as "persuasion" so that local technology companies would also consider an IPO in the country.

IDX Development Director Hasan Fawzi said: some adjustment points compiled from discussions with industry players. Among them are related to the option to enter the main board, expansion of sub-sector classification, and related to rights founder do dual class sharing.

Dual listings It is also predicted to be an option for startups, because it is undeniable that investors from the US stock exchange are connecting companies to reach a wider circle of investors. On the other hand, an IPO on a local stock exchange will excite the Indonesian market, while also being an embodiment of nationalism.

According to IDX Commissioner Pandu Sjahrir, as quoted by Time, there are currently three unicorn who registered with the local exchange, although the details of their names were not mentioned.

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