Carsome Group is putting off plans to dual list as a publicly traded company on exchanges in the United States and Singapore because executives are concerned a decline in global financial conditions could reduce valuations for the used-car marketplace, Bloomberg reported Tuesday (June 21).
Carsome, according to Bloomberg, is the most valuable privately held company in Malaysia.
Describing its business on its website, Carsome states: “From car inspection, ownership transfer, to easy financing, selling a car becomes hassle-free. Carsome eliminates the pain points in the traditional used car selling process, offering effective solutions to consumers and used car dealers.”
Bloomberg cited anonymous sources as having said the company could revive plans for an initial public offering in 2023, based on market conditions. A Carsome spokesman declined to comment on the matter of the listing, the news service reported.
In general, slowing economic growth and rising interest rates have made holding initial public offerings less attractive and the market has responded with a slowing in offerings. Bloomberg said that the volume of global IPOs has fallen to $101 billion so far in calendar 2022 compared to $338 billion during the same period in 2021.
Carsome, which was founded in 2015, was valued at $1.7 billion in a $290 million fundraise led by the Qatar Investment Authority, according to Bloomberg. The company states on its website that it works with more than 8,000 automobile dealers in Malaysia, Indonesia, Thailand and Singapore, and processes transactions at a rate of 100,000 per year.
In 2020, TechCrunch reported, Carsome raised $30 million.
Earlier this year, Carsome acquired iCar Asia of Australia for about $133 million.
And on June 7, Carsome opened what it said was its biggest “auto mall” so far.
“For customers, the Automall enables them to experience prospective cars — from viewing, to selecting, to on-the-spot test driving — and thereon completing their purchase with on-site financial facilities that can process loan applications and approvals in one day. Additional conveniences include car aesthetic services such as detailing and tinting for their newly bought cars,” an item on the Carsome website states.