“Securing funding in the near future will likely get increasingly difficult as investors shy away from heavy cash-consuming businesses,” the study noted. Unicorn funding in South-East Asia only reached US$3bil in the first half of 2020 compared to the US$5.1bil in the same period the previous year, according to the 2020 “e-Conomy SEA” report by Google, Temasek Holdings and Bain & Co. The IDX’s decision comes at a time when many unicorns want to go public as private investments dwindle. Hasan went on to say that the IDX was in the final steps of opening the bourse’s Main Board to loss-making companies with high valuation and good growth prospects, a characteristic of many big tech startups.Īttracting tech startups is one of the bourse’s many strategies to deepen Indonesia’s shallow financial market whose market capitalisation-to-gross domestic product (GDP) ratio of 46.8% is the lowest among the Asean-6. Because SPACs have no fundamental operation, they can conduct due diligence faster than regular companies and, therefore, allow the acquired firm to be listed sooner. “The nature of these new types of economies is different from traditional companies, so we need to anticipate their interest in going public,” he told The Jakarta Post, referring to tech startups such as fintechs and e-commerce platforms.Ī SPAC is a shell company that raises money through an initial public offering (IPO) for the sole purpose of acquiring another firm. IDX development director Hasan Fawzi said the bourse would pass regulations by July that would allow companies to go public using special-purpose acquisition companies (SPAC) and to issue dual-class shares, both of which have been hot topics among tech start-ups worldwide. JAKARTA: The Indonesia Stock Exchange (IDX) plans to win over local tech unicorn listings by relaxing its rules this year after it was reported that three such companies were considering listing abroad.
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