The Singapore-based startup introduced Tuesday that it will merge with a particular function acquisition firm (SPAC) backed by Altimeter Capital in a deal that may pave the method for a New York itemizing and worth Grab at about $39.6 billion.
Under the deal, Grab is elevating greater than $4 billion in money from traders together with Fidelity, BlackRock, T. Rowe Price, Abu Dhabi sovereign wealth fund Mubadala, and Singapore authorities funding arm Temasek. US funding agency Altimeter Capital is placing up $750 million. Grab plans to start out buying and selling on the NASDAQ underneath ticker image “GRAB” in the coming months.
SPACs are shell corporations with restricted or no working property, which often go public solely to boost cash and purchase current companies. These corporations was sneered at on Wall Street, however have taken off in a giant method over the previous yr.
But this reverse merger is not like different such offers, Grab mentioned Tuesday.
It identified, for instance, that the shares acquired by Altimeter will likely be topic to a three-year lockup interval, which it mentioned is considerably longer than related transactions and highlighted confidence in the startup’s long-term potential.
Asked why the agency selected to go public in the United States, slightly than in Southeast Asia, Grab co-founder Tan Hooi Ling mentioned that the firm wished to faucet into its bigger investor base.
“For us, the US listing is important because it gives us access to the widest global base of liquidity,” she informed NCS Business in an interview Tuesday.
“At the same time, we’re still exploring alternatives on whether we can do a concurrent listing locally as well, and those are still existing conversations that we’re exploring.”
The firm is corresponding to a mashup of “Uber plus DoorDash plus Ant Financial, all in a single app,” in accordance with Altimeter Capital CEO Brad Gerstner.
Grab has additionally been a winner of the coronavirus disaster. Last yr, its gross merchandise worth, a measure of gross sales, reached $12.5 billion, larger than pre-pandemic ranges and greater than double that of 2018, in accordance with the firm.