Blockbuster IPOs of Didi Chuxing, Grab will benefit Korea’s top brokerage
Chinese ride-hailing giant Didi Chuxing is poised to go public on the New York Stock Exchange, which would be a blockbuster initial public offering (IPO) as it is valued at more than $60 billion.
Observers even expect that its value will reach $100 billion at the time of its Wall Street debut so as to mark one of the largest technology IPOs in history.
And one of the unexpected beneficiaries will be its early investors, including South Korea Mirae Asset Securities, which is the country’s top brokerage house by any measure.
Mirae Asset invested about 300 billion won ($267 million) in 2018 in Didi Chuxing. Back then, its valuation was some $56 billion, which means that Mirae Asset can chalk up handsome profits thanks to the listing.
In the same year, the Seoul-based company also funneled $150 million in Grab, Southeast Asia’s foremost ride-hailing and food delivery company that strives to go public.
It plans to merge with U.S.-based Altimeter, and the worth of the amalgamated firm is projected to approach $35 billion. This means that the value of Mirae Asset’s stake will more than triple in less than three years.
Other up-sized IPOs are imminent
Mirae Asset also channeled its funds into other Asian candidates of up-sized IPOs, including China’s drone powerhouse DJI, Indonesia’s online retailer Bukalapak, Indonesia’s food-delivery outfit HappyFresh, and India’s e-commerce food company BigBasket.
Plus, Mirae Asset cashed in some $22 million profit through a pre-IPO investment in BioNTech, a German bio firm that debuted on the Nasdaq last year.
“During the past few years, Mirae Asset has invested in unicorn companies in such promising areas as shared economy and bio,” a Mirae Asset representative said.
“IPOs of corporations included in our investment portfolio will generate profits in a full-fledged manner.”
Such a strategy is in line with the requests of Mirae Asset’s founding Chairman Park Hyeon-joo, who has stressed the significance of innovative companies.
During recent YouTube video clips of Mirae Asset Securities, the entrepreneur urged to invest in prominent start-ups.