Singapore's Grab to go public in New York with $35 billion valuation

Founded in 2012, Grab is a Southeast Asian ride-hailing and delivery services giant that serves a regional consumer market of more than 655 million people in countries such as Indonesia , Thailand and Vietnam .

Grab could finalize a deal as soon as this week to list in New York through a special purpose acquisition company backed by Altimeter Capital , three people familiar with the matter said.

The merger, which will be with one of the U.S. investment firm’s two Altimeter Growth Spacs and comes after Grab’s board agrees to a preliminary deal, has been seen as a crucial first test for Southeast Asian unicorns preparing to go public this year.

Earlier, there were reports that Grab would raise about US$2.5 billion through a public offering of private investment, and this financing is usually raised together with an SPAC transaction , which involves the sale of listed company shares through private arrangements with investors.

Nearly $1.2 billion of that would be funded by Altimeter, which would also back any sale of Spac by public shareholders , the people said , though those figures could change based on talks with investors.

If Grab’s merger with Altimeter is approved by the startup’s board, it would be the largest such deal in the world .

Grab , which started out as an Uber-like ride-hailing company and later expanded into food delivery and financial services including payments , loans and insurance , has obtained a digital banking license in Singapore.

Data shows that in 2020, Grab 's revenue increased by 70% compared with 2019. The company 's ride-hailing service business is breaking even in all operating markets. One banker said Grab's listing deserves special attention because the deal is not from the United States, but from the Asia-Pacific region .

Looking at the listings of companies in Asia in 2020, 2021 may also become a record year for fundraising by Asian technology and Internet companies.

Other Southeast Asian unicorns planning to go public include Indonesia-based Gojek, Grab's main rival, which merged with e-commerce platform Tokopedia ahead of its planned listing.

Cross-border e-commerce market

Southeast Asia