Southeast Asia Grab Goes Public on Nasdaq at $39.6 Billion Valuation with SPAC Merger
16th April 2021 | Singapore
Grab, one of the largest ride-hailing and technology company in Southeast Asia, is going public on Nasdaq at a $39.6 billion valuation in a merger with Special Purpose Acquisition Company (SPAC), Altimeter Growth Corp. The SPAC merger will raise $4.5 billion for Grab.
” Grab Goes Public on Nasdaq at $39.6 Billion Valuation with SPAC Merger “
SPAC (Special Purpose Acquisition Company) is also popularly referred to as a blank cheque company, that allows the listed company without any existing businesses to raise capital through an IPO (initial public offering), and thereafter use the capital to invest into companies.
Grab to Receive $4.5 Billion
With the merger, Grab will receive approximately $4.5 billion, with $4.04 billion in private placement investment with key investors including BlackRock, Fidelity, T. Rowe Price, Janus Henderson, Nuveen, Mubadala (Abu Dhabi SWF), Permodalan Nasional (Malaysia SWF) and Temasek (Singapore SWF).
SWF ~ Sovereign Wealth Fund
Grab, founded in 2012
Grab, the superapp of Southeast Asia, was founded in 2012 by Harvard graduates Anthony Tan and Tan Hooi Ling as a taxi-hailing app in Malaysia. They launched MyTeksi for users to book taxis. Shortly, MyTeksi was renamed to Grab and relocated to Singapore.
With backing from investors including Softbank, Grab became Southeast Asia’s largest ride-hailing company and expanded into food delivery, digital payments and financial services.
Today, Grab serves more than 187 million users in over 350 cities across 8 countries in Southeast Asia, including Singapore, Malaysia, Thailand Indonesia, Vietnam, Philippines, Cambodia and Myanmar. In 2020, Grab reported revenue of $1.6 billion and net loss (EBITA) of $800 million.
With the SPAC merger with Altimeter Growth Corp, Grab will receive approximately $4.5 billion at a $39.6 billion valuation.
Evercore is the financial advisor to Grab for the transaction and JP Morgan and Morgan Stanley are co-advisors. JP Morgan and Morgan Stanley are the lead placement agents and Evercore and UBS are co-placement agents to Alimeter Growth for the private placement.
With the upcoming listing on Nasdaq, Grab will trade under the Nasdaq ticket symbol GRAB. Grab is also considering a secondary (dual) listing in Singapore (Singapore Exchange).
Grab founder Anthony Tan will own 2.2% (122.9 million shares), which is valued at around $870 million. Co-founder Tan Hooi Ling will own 0.46% (25.6 million shares) and President Tan Ming Maa will own 0.26% (14.4 million shares), which is valued at $181 million and $102 million respectively.
Grab shares valuation for Anthony Tan, Tan Hooi Ling, Tan Ming Maa:
- Anthony Tan ~ $870 million
- Tan Hooi Ling ~ $181 million
- Tan Ming Haa ~ $102 million
Their shares account for around 3% of total shares but around 60% of the weighted voting. The major shareholders of Grab will be SoftBank Vision Fund (18.6%), Uber (14.3%), Didi Chuxing (7.55) and Toyota Motor (5.9%).
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Grab is the leading superapp platform in Southeast Asia, providing everyday services that matter to consumers. Today, the Grab app has been downloaded onto millions of mobile devices, giving users access to over 9 million drivers, merchants, and agents. Grab offers a wide range of on-demand services in the region, including mobility, food, package and grocery delivery services, mobile payments, and financial services across 428 cities in eight countries.
About Altimeter Capital Management
Altimeter Capital Management, LP is a leading technology-focused investment firm built by founders for founders with over $15 billion in assets under management. Altimeter’s mission is to help visionary entrepreneurs build iconic companies, disrupt markets and improve lives through all stages of growth. Altimeter manages a variety of venture and public funds and serves as an expert long-term partner to companies as they enter the public markets.