Grab And Asian Uber Announce their Upcoming IPO

The Singaporean transport giant Grab should be valued at nearly 40 billion dollars on the occasion of its upcoming entry on Wall Street, a record for an SAVS (specialized company or SPAC) this entry technique on the stock market now popular with companies.

The group, which bought the activities of the American Uber in Southeast Asia in 2018, plans to merge with the investment fund Altimeter Capital Management, according to a statement released Tuesday announcing an operation “in the coming months”.

This operation “gives us immense pride in representing South-East Asia on international markets,” said Anthony Tan, co-founder and CEO of Grab, quoted in the press release.

The IPO will take place on the US Nasdaq stock exchange, under the symbol “GRAB”.

If completed, it will be, with a valuation of $ 39.6 billion (33.2 billion euros) according to Grab, the largest IPO ever conducted via the now very popular financial mechanism of “SPAC”.

For the company just starting out on the market, it is a question of merging with a company acting as an empty shell, already listed and whose aim is to facilitate stock market introductions.

The PSPC market is booming on Wall Street, where many companies favor this access route, which is faster and less expensive than a traditional IPO.

A record amount of $ 99 billion was collected through 306 merger transactions this year, according to statistics from SPAC Research data, after an already historic 2020 on this front.

The latest giant to announce an entry on Wall Street via a SPAC at the end of March, WeWork will merge with the company BowX Acquisition Corp in a transaction valuing it at $ 9 billion and allowing it to recover $ 1.3 billion in money fresh.

Successful entrepreneurs or personalities (known as “sponsors”), like rapper Jay-Z or former basketball star Shaquille O’Neal in the United States, also generally associate their names with PSPC. , contributing to their publicity.

This enthusiasm was not without consequence on the transparency of certain operations, and the American financial policeman (SEC) announced Monday its intention to review some of them.

Founded in 2011, Grab operates in Singapore, Cambodia, Indonesia, Malaysia, Burma, Philippines, Thailand and Vietnam. The company, which offers, in addition to transport services, the delivery of meals and groceries, was worth around $ 15 billion in October 2019, according to the specialist site Pitchbook.

Grab’s IPO will also allow it to have $ 4.5 billion in new money, he said on Tuesday, through an operation that will see the giants Blackrock and Fidelity International participate, as well as the Abu Dhabi Mubadala investment fund, and Singaporean sovereign wealth fund Temasek.

Grab’s investors include Japanese company Softbank, as well as automakers Toyota and Hyundai.