Grab to Go Public in US via $40 Billion SPAC Deal

Grab to Become Publicly Traded in the U.S.

Grab, a prominent ride-hailing and delivery service, has revealed its intentions to become a publicly listed company in the United States. Originating in Singapore, the company has significantly expanded its services.

From Ride-Hailing to Super App

Initially launched as a ride-hailing application, Grab has transformed into a comprehensive “super app” throughout Southeast Asia. It now provides a diverse range of consumer services.

• These services include food delivery.
• Financial services, such as a digital e-wallet for sending and receiving funds, are also offered.

Geographic Reach and Funding

Grab currently operates across eight countries: Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, and Vietnam. The company has successfully secured over $10 billion in funding, with significant investment originating from SoftBank’s Vision Fund, as reported by Crunchbase.

SPAC Merger for Public Listing

To facilitate its public debut, Grab will merge with Altimeter Growth Corp, a Special Purpose Acquisition Company (SPAC) based in the U.S. Utilizing a SPAC offers a streamlined path to public listing, particularly advantageous for international companies.

This transaction is projected to be the largest SPAC merger globally. Upon completion, Grab’s stock will be traded on the Nasdaq exchange under the ticker symbol ‘GRAB’.

Financial Highlights and Future Outlook

Grab reported a gross merchandise value (GMV) of approximately $12.5 billion in 2020. The merger will establish a valuation of $39.6 billion for Grab, while also providing the company with $4.5 billion in cash reserves.

The company anticipates substantial growth in both the food delivery and on-demand mobility sectors within Southeast Asia. The total addressable market is forecast to expand from $52 billion to $180 billion by the year 2025.

Leadership Perspective

“This represents a pivotal moment in our mission to broaden access to the benefits of the digital economy for all,” stated Anthony Tan, Grab’s co-founder and CEO. “This is particularly crucial as the region navigates recovery from the COVID-19 pandemic.”

He further explained, “The challenges presented by the pandemic underscored the resilience of our business model and prompted our driver-partners to adapt to delivery services. This adaptability enabled us to achieve growth while simultaneously enhancing profitability.”

Tan added, “As a publicly traded entity, we will intensify our efforts to foster economic empowerment within our communities, recognizing that Grab’s success is inextricably linked to the prosperity of Southeast Asia.”

Altimeter’s Commitment

Altimeter has committed to a three-year lockup period for its sponsor shares. This ensures a sustained level of dedication to Grab’s long-term success and stability.