Traveloka is considering to join the public listing bandwagon. To proceed with the IPO, Traveloka might need to merge with a special purpose acquisition company (SPAC).
Traveloka and SPAC merger for IPO scheme explained
According to Reuters, merging with a special purpose acquisition company (SPAC) is an option that Traveloka is currently considering to take. The SPAC will act as a shell company and acquire another company by using proceeds from going public. The company to purchase will still be unidentified by the time of listing. The target company chosen for the merger is often a start-up that has shown significant growth.
The SPAC merge scheme can offer a faster and lower cost to go public in the market than the traditional initial public offering (IPO) pattern. In this case, Traveloka is the target company. SPACs have been targeting Traveloka amongst other start-ups. A source of Reuters leaked that Traveloka is currently deliberating between an IPO or a SPAC. However, Traveloka remains silent upon the matter.
A glimpse into Traveloka’s future prospect
Traveloka is aiming big. In 2019, Traveloka president Henry Hendrawan mentioned that he was looking for the possibility of dual listing. Hendrawan was hoping to list the company in Jakarta and another bigger centre such as the United States.
Traveloka’s big aim is not unreasonable. Despite being in the industry only for eight years, Traveloka’s total download has exceeded 60 million downloads. The unicorn company has also extended to provide financial service. Accordingly, Traveloka has raised $250 million in the latest funding round announced in July.
East Ventures managing partner Willson Cuaca went strong and told Reuters in December that “Traveloka will be profitable by 2021.” The statement seems to back up Hendrawan’s similar expectation that he once told to media back in October.
Read also: US Tech Giants Inject Funds into Indonesia’s Unicorn
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