Quek Siu Rui on IPO plans
SINGAPORE – Southeast Asian online marketplace Carousell will review all options for the company’s growth, including a likely IPO, Co-Founder and CEO Quek Siu Rui told CNBC on Monday.
Last week, Carousell said it raised $ 100 million in fresh funds that the company valued at more than $ 1 billion, making it what it calls a “unicorn.” The new capital will be used to expand into other categories of used goods as well as markets and to make strategic acquisitions to scale according to the company.
An IPO may also be pending. According to media reports, the start-up is considering a possible listing on the US stock exchange this year through a merger with a blank check company or a special purpose vehicle (SPAC). But Quek did not provide any information on Monday.
The Carousell co-founders Siu Rui Quek, Marcus Tan and Lucas Ngoo.
“In terms of a US listing, in terms of an IPO, with this round of funding we’re actually very well capitalized for what we need to do, and that’s really because of the huge amount of support we’ve got.” from our investors, “Quek said on CNBC’s Squawk Box Asia.
He stated that a potential IPO could be a way to scale the business among other options, including raising private capital from strategic investors and partners. “We will consider all of the options in our process of scaling the business,” he said.
“Ultimately, we want to make sure that we have a good investor base that supports our long-term growth story, values our business model and where we want to go,” added Quek.
Carousell hired former Razer executive Edwin Chan as chief financial officer earlier this year. Chan oversaw the Hong Kong listing of the gaming hardware company in 2017.
Several high-profile startups in Southeast Asia have either announced plans to go public or have already gone public. These include Southeast Asian ride-hailing giant Grab, which has announced plans to go public by merging with a blank check company, and Indonesian e-commerce company Bukalapak, which debuted in the market last month.
Last Friday, the Singapore government announced a series of initiatives to attract high-growth companies from across the region to list on the Singapore Exchange. These include a new fund to help companies raise capital through listings, which could potentially turn the Singapore equity market around.
High-growth start-ups from the region have traditionally chosen to be listed in the USA because of their relatively easier access to capital and a broader investor base. Some investors say local markets don’t yet have the capacity to handle mega IPOs like the one announced by Grab, which would value the company at nearly $ 40 billion.