Which unicorn listings could GIC and Temasek stand to gain from?

TECH unicorns Gojek, Traveloka and Didi Chuxing are reportedly eyeing the public markets, and they have one thing in common – backing from Singapore’s state investors.

GIC and Temasek are global giants in the world of tech investments and came in tops in Global SWF’s survey of 438 state-owned investors in 2020.

As several companies head for a public listing amid a global rally in tech stocks, The Business Times (BT) takes a look at some of the aces both investors have in hand.

1. Gojek (GIC and Temasek)

Indonesia-based Gojek, valued at around US$10 million in April 2020, could list in the US and Indonesia after merging with Tokopedia. The merged entity is reportedly targeting a valuation of US$35-40 billion.

GIC’s investments:

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Held a 7.29 per cent stake as at March 2020, likely making it the single-largest shareholder, based on regulatory filings in Indonesia seen by venture builder Momentum Works.

Temasek’s investments:

January 2018: Joined US$1.2 billion funding round

2. Ant Group (GIC and Temasek)

The fintech giant could still head for an initial public offering (IPO), though it is anyone’s guess when that will happen. Its expected IPO valuation in November last year was US$313.4 billion. GIC and Temasek invested in 2018, with Ant getting a US$150 billion post-money valuation.

GIC’s investments:

June 2018: US$780 million in Ant International Class C shares, based on BT’s calculations

Temasek’s investments:

June 2018: US$500 million in Ant International Class C shares, based on BT’s calculations

3. Didi Chuxing (Temasek)

The Chinese ride-hailing company, valued at US$57.6 billion in April 2018, is in early talks with investment bankers and might list in the second half of this year, according to tech news outlet The Information. It is eyeing the Hong Kong Stock Exchange with a valuation of more than US$60 billion, Reuters reported.

December 2014: Temasek led US$700 million Series D round in Didi Dache (pre-merger entity) July 2015: Joined US$2 billion funding round

4. Traveloka (GIC)

The online travel unicorn is looking to list in the US this year via a special purpose acquisition company (SPAC). It was valued at US$2.75 billion in July 2020 amid the Covid-19 pandemic.

April 2019: GIC reportedly led US$420 million funding round July 2020: Reportedly joined US$250 million funding round

5. Tokopedia (Temasek)

Tokopedia’s merger with Gojek might become one of the biggest M&A (mergers and acquisitions) deals in South-east Asia. The deal caught public attention after Gojek’s merger talks with Grab fell through. Tokopedia was valued at US$7 billion in November 2018.

November 2020: Temasek invested an undisclosed amount. Held 3.28 per cent stake through Anderson Investments, based on regulatory filings in Indonesia.

IPO gains

GIC and Temasek have already reaped some paper gains over the years as their portfolio tech firms went public. Here are some notable companies whose valuations jumped after their recent IPO.

1. Kuaishou (GIC and Temasek)

ByteDance-rival Kuaishou’s IPO valuation in February was US$60.9 billion. Its share price surged 160 per cent in its Hong Kong debut and the company was valued at US$168.3 billion as at Monday.

GIC’s investments:

March 2018: US$55 million in Series E preference shares (through close associate) January 2021: US$330 million as IPO cornerstone investor

Pre-IPO stake: 0.33 per cent

Temasek’s investments:

February 2020: US$200m in Series F-2 preference shares (through indirectly wholly-owned unit) January 2021: US$330m as IPO cornerstone investor (through indirectly wholly-owned unit)

Pre-IPO stake: 0.86 per cent

2. DoorDash (GIC and Temasek)

The food delivery firm - dubbed a “pandemic winner” -  saw its shares soar 85.8 per cent from its IPO price in its market debut. With the company now valued at US$53.7 billion as at Monday, GIC’s 8.37 per cent stake could represent a paper gain of nearly 29 times.

GIC’s investments:

March-May 2018: US$115.1 million in Series D redeemable convertible preference shares (RCPS) August 2018: US$20 million in Series E RCPS February-May 2019: US$10 million in Series F RCPS May-November 2019: US$10 million in Series G RCPS

Pre-IPO stake: 10.5 per cent

Temasek’s investments:

February 2019: Co-led US$400 million funding round

Pre-IPO stake: Undisclosed. Held an aggregate stake of 1.91 per cent as at Dec 31, 2020 after IPO, based on a US Securities and Exchange Commission (SEC) filing.

3. Airbnb (Temasek)

Pandemic-induced travel lockdowns did not stop Airbnb’s stock from leaping to US$144.71 in its public debut, from its IPO price of US$68. The company was valued at US$118.1 billion as at Monday, though Temasek appears to hold a very thin stake in the company, possibly due to dilution.

June 2015: Joined US$1.5 billion funding round

Pre-IPO stake: Undisclosed. Held an aggregate stake of 0.04 per cent as at Dec 31, 2020 after IPO, based on an SEC filing.

Note: Investments and stakes in Ant Group, Kuaishou and DoorDash are based on IPO prospectuses.

FOR A MORE DETAILED ANALYSIS:GIC, Temasek poised to reap capital gains bonanza from tech IPO season