IPO is the main exit road for start-ups next year

In Singapore’s Marina Bay a cyclist rides past the city’s horizon.

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SINGAPORE – According to the CEO of Passing Holdings, the corporation is likely to hold off on mergers and acquisitions plans due to the core going coronomic epidemic as the main exit route for most start-ups in the near term to public goers Is expected to be.

Vertex is the venture capital arm of Singapore state investor Temasek Holdings and has over $ 3 billion in assets from management as well as more than 200 active portfolio companies. It has six network funds, which invest in early tech start-ups, health care start-ups and growth-stage companies spread across places such as the US, China, Israel, Southeast Asia and India.

“I think the IPO market still remains strong based on what we can see so far. I think the US market will remain strong for the short term and then for the Chinese market as well, a very strong IPO market. Will remain. ” Chua Kee Lock said on CNBC’s “Squawk Box Asia” on Monday.

According to Chua, Vertex has two companies that plan to go public next year, one in the US and the other in China. The firm has endorsed some prominent names including Jayant Vishal Grab, a South East Asia ride.

The initial public offering will be “a significant exit route for most start-up companies,” Chua said, “but at the same time, when things go well, maybe in the second half of next year, we’ll be looking for some big companies For opportunities and they will start acquiring companies in the region and even in other parts of the world. ”

Despite the global economic uncertainties surrounding the coronovirus epidemic, many companies have already gone public this year – particularly in the technology sector in both the US and China. More are lining up for their debut, including AirBnB and DoorDash. This year’s most anticipated initial public offering was scheduled to take centerstage in Hong Kong and Shanghai where the Alibaba-affiliated Ant Group, which operates a large-scale Alipay system, was publicly held before suspending record-setting listings Was set to go.

Tech ‘bifurcation’

Trade wars and growing technology rivalries between the United States and China are on the radar for investors and companies alike. Although American companies are optimistic about doing business in the world’s second-largest economy after this month’s presidential-election Joe Biden victory, experts have said tensions between countries are unlikely to go away under the Biden administration.

Chua of Vertex said he expected trade tensions to increase for the foreseeable future even under Biden. China would see the US as an unreliable supplier and would therefore emphasize the growth of domestic companies and industries, he explained. Chua said that the US will continue to see China as a threat and will work to bring important technologies into the country.

“You’ll continue to see that dichotomy,” he said adding the start-up would have to navigate that separation.

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