Singapore’s Grab plans $40b US market entry

The Asian ride-hailing firm Grab said yesterday that it plans a US listing in partnership with Altimeter Growth Corporation in an operation that values Grab at $39.6 billion.

The listing, planned “in the coming months” on the Nasdaq exchange, would be the biggest market launch to date via a Special Purpose Acquisition Company (SPAC). If successful, it should provide Grab with $4.5 billion in fresh funds, the Singapore-based company said.

Blank-cheque vehicle

The deal would involve Grab, a popular ride-hailing company that also delivers meals and provides financial services, merging with what is sometimes also called a “blank-cheque vehicle” that is already listed and whose business consists of assisting stock market flotations.

The so-called SPAC model has become a popular way of managing such listings because they are faster and less expensive than initial public offerings (IPOs).

Grab, an Asian “unicorn” — or privately held start-up valued at more than $1 billion — could pave the way for similar companies in the region that also want to sell shares to the public.

“It gives us immense pride to represent Southeast Asia in the global public markets,” the statement quoted Grab co-founder and chief executive Anthony Tan as saying.

Trading on Nasdaq

It added that Grab’s partnership with Altimeter should lead to “the largestever US equity offering by a Southeast Asian company”.

The combined company would trade shares “on Nasdaq under the symbol ‘GRAB’ in the coming months,” the statement said. “The proposed transactions value Grab at an initial pro forma equity value of approximately $39.6 billion,” it added.