- Tram Ho
According to Bloomberg, Southeast Asian ride-hailing and delivery giant Grab has seen a market capitalization of 22 billion USD since its IPO last December through a deal with the company SPAC.
Specifically, the company’s stock price has dropped 63% since its launch, placing it on the Nasdaq Composite Index’s worst-performing list during that time period. Not stopping there, Thursday’s 37% drop marked the biggest-ever sell-off after the Singapore-based company’s quarterly net loss nearly doubled year-over-year. The turmoil came as about 115 million shares changed hands, more than four times the average over the past month.
Grab’s loss hit $1.06 billion in the fourth quarter, compared with consensus estimates of $645 million. The growing losses had investors fleeing the stocks of other companies that had yet to make a profit. Grab was the worst performer in the De-SPAC Index on Thursday.
Earlier in December, Grab officially listed on the second largest US stock exchange – Nasdaq – with the stock code GRAB.
“I’ve hosted many bells over the years, but today’s Ringing Ceremony has a whole lot more special meaning,” said Bob McCooey, Nasdaq Asia Pacific President. , To share.
This is Nasdaq’s first Bell Ring held in Southeast Asia. Grab CEO Anthony Tan and his team brought the ceremony, traditionally held in New York, to the common home of Southeast Asia.
“This is the largest US-listed transaction in history by a Southeast Asian company, and I can see why Grab has grown into a family-friendly brand and a super #1 app in the region,” added Mr McCooey.
Grab’s share price jumped in pre-market trading in New York. However, after opening, the price was only at 13.06 USD, down more than 21% on the first day. The drop in price wiped out about $17 billion of the company’s market value and meant that Tan’s stake, initially worth more than a billion dollars, ended the session at just $725 million, according to the Billionaires Index. Bloomberg’s rich.
Grab was founded in 2012, with the initial service of calling a taxi. Currently, Grab is providing delivery, transportation and digital finance services in more than 400 cities in 8 Southeast Asian countries including Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Philippines, Thailand and Vietnam. Vietnam.
The pandemic has taken a toll on Grab’s operations as demand for mobility services falters amid tightening measures and restrictions across the region. Furthermore, the company is facing increasing competition after its Indonesian rival, Gojek, merged with e-commerce provider Tokopedia. GoTo, the post-incorporation entity, is preparing for an initial public offering in the country and in the US next year.
But Anthony Tan remains confident that things will get better for Grab as more people get vaccinated and countries choose to pursue a strategy of living with Covid-19.
“We’re confident about our business.” He also added that “Things are going well,” referring to meeting this year’s goal for total merchandise value to increase from $15 billion to $15.5 billion.
Source : Genk