Malaysia's Carsome said to delay plans for dual listing in Singapore and United States

KUALA LUMPUR • Carsome Group, which operates a South-east Asian used-car online marketplace, is delaying its dual listing plans in Singapore and the United States on concerns that deteriorating macroeconomic conditions could dent its valuation, according to sources with knowledge of the matter.

Malaysia's most valuable technology start-up has halted work on the planned offerings that were set for this year, the sources said.

Carsome may revive the first-time share sales next year if markets improve, said the sources, who asked not to be identified as the process is private.

A representative for Carsome declined to comment.

Higher interest rates combined with slowing economic growth and geopolitical tensions have hurt market sentiment and weighed on first-time share sales.

Since the start of the year, companies have raised about US$101 billion (S$140 billion) through initial public offerings (IPOs) globally this year, down from US$338 billion in the same period last year, according to data compiled by Bloomberg.

Chinese podcasting start-up Ximalaya is pushing back the launch of its planned IPO in Hong Kong after it met with lukewarm demand during early talks with prospective investors, it was reported this week.

Carsome raised US$290 million in January at a valuation of US$1.7 billion in a series E round led by the Qatar Investment Authority as well as 65 Equity Partners and Seatown Private Capital Master Fund, both of which are backed by Singapore's Temasek.

Founded in 2015, Carsome has expanded into Indonesia, Thailand, and Singapore.

The company works with more than 8,000 dealers and handles more than 100,000 transactions on an annualised basis, according to its website.

It completed the acquisition of Australia-listed iCar Asia for about A$191 million (S$183.2 million) this year.

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A version of this article appeared in the print edition of The Straits Times on June 23, 2022, with the headline Malaysia's Carsome said to delay plans for dual listing in Singapore and United States. Subscribe