Shulou(Shulou.com)11/24 Report--

According to news in the morning of December 13, Beijing time, international investors who have confidence in three hot technology companies in Southeast Asia are facing a grim reality. The three companies have lost $51 billion in market capitalization in the past year and a half since they went public.

Grab Holding, a Southeast Asian ride-hailing giant from Singapore, went public in the United States about a year ago. At present, Grab's market value has shrunk by more than 70 per cent. At the time of its merger with SPAC Altimeter Growth, Grab was the most valuable startup in Southeast Asia. Grab has attracted more than $4 billion from well-known investors such as BlackRock, Fidelity International and T. Rowe Price Group.

PT GoTo Gojek Tokopedia created Indonesia's largest IPO (initial public offering) this year, while another Indonesian technology giant, PT Bukalapak.com, went public in 2021. The two companies are listed on the Jakarta stock market in Indonesia, and their shares have fallen 74 per cent and 69 per cent respectively since listing. The share prices of both companies have lagged far behind the local benchmark index. The Nasdaq 100 index has fallen about 30% since the start of the year.

Grab currently has a market capitalization of about $11.6 billion, according to the data. Although Grab's share price has rebounded since it reported better-than-expected third-quarter results, investors remain sceptical about when the company will turn a profit.

Before that, some Indian start-ups also received high valuations after going public, but they were questioned by investors. These newly listed companies in Southeast Asia face the same situation. Investors are eager to snap up shares in companies with high growth potential, and the three companies provide investors with access to Southeast Asia's booming e-commerce industry. However, rising global interest rates and the risk of recession are hitting technology stocks.

There are also fears that early investors will reduce their holdings after the initial lock-up period ends. This happened to several companies in India after they went public. GoTo's market capitalization has fallen by nearly 60 per cent in the past month as the lock-up period of major shareholders expires and investors are worried about the company's profit prospects.

GoTo said on Thursday that it had enough money to keep it profitable.

Sea, the parent company of Shopee, another Singapore unicorn, went public in the United States in 2017. The company has also lost about $169 billion in market value since its share price hit an all-time high in October 2021.

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