- Tram Ho
Singapore-based Grab offering from ride-hailing to financial services was able to complete its New York listing through a special purpose acquisition of Altimeter Capital this week, sources said. The Financial Times said.
The deal is seen as the first major test of the Southeast Asian unicorns set to go public this year.
The agreement with SPAC will help Grab raise about $ 2.5 billion, of which $ 1.2 billion is financed by Altimeter. Grab will merge with Altimeter Growth 1, which raised $ 450 million last year.
Both Grab and Altimeter declined to comment.
If Grab’s merger with Altimeter SPAC is approved by the startup’s board, it would be the largest globally. The Financial Times source said that the deal has not been finalized yet.
Altimeter, a Silicon Valley-based company that manages more than $ 15 billion in tech investments, both private and public, is known for helping companies prepare to go public. . The company has raised $ 850 million for 2 SPACs. In 2015, Altimeter invested a 15.1% stake in data analytics company Snowflake, worth $ 4.4 billion when it listed in New York last year.
So far, Grab has raised a total of $ 12 billion, though not yet profitable. Start-up unicorns have about $ 5 billion in cash reserves, valued at around $ 16 billion.
SoftBank Vision Fund, one of Grab’s top investors, will win big from the deal. Anthony Tan, the founder of Grab owns about 2% of the shares.
Grab’s revenue will grow 70% in 2020. The company says its ride-hailing business has broken even in all markets.
Grab’s listing is particularly notable because an agreement comes not from the US but from Asia, and moreover, Southeast Asia, a largely underrepresented region on the US stock market.
This year sets a record for Asian internet and technology companies raising capital. Other Southeast Asian unicorns that plan to go public include Gojek (Indonesia), Grab’s main rival, which is in talks to merge with e-commerce company Tokopedia ahead of its listing.
Founded in 2012, Grab started its ride-hailing business like Uber before expanding into food delivery and finance (payments, loans and insurance). The company has been licensed with digital banking in Singapore. Grab is currently accessing the regional market of more than 655 million people in countries including Indonesia, Thailand and Vietnam …
Source : Genk