Grab set to go public through record $40B SPAC deal

Singapore-based ride hailing and food delivery company Grab announced that it is going public in the U.S. in partnership with special-purpose acquisition company Altimeter Growth Corp. It is expected to be the largest-ever U.S. equity offering by a Southeast Asian company.

SoftBank-backed Grab said it is set to secure a valuation of $39.6 billion after the combination with Altimeter Growth Corp. and to have approximately US$4.5 billion in cash proceeds to Grab. The combined company expects its securities will be traded on NASDAQ under the symbol “GRAB” in the coming months. 

Anthony Tan, Group CEO and Co-founder, Grab said, “It gives us immense pride to represent Southeast Asia in the global public markets. This is a milestone in our journey to open up access for everyone to benefit from the digital economy. This is even more critical as our region recovers from COVID-19. It was very challenging for us too, but it taught us immensely about the resiliency of our business. Our diversified superapp strategy helped our driver-partners pivot to deliveries, and enabled us to deliver growth while improving profitability. As we become a publicly-traded company, we’ll work even harder to create economic empowerment for our communities, because when Southeast Asia succeeds, Grab succeeds.”

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The PIPE was led by funds managed by Altimeter Capital Management, LP which committed US$750 million, with participation from funds and accounts managed or advised by BlackRock, Counterpoint Global (Morgan Stanley Investment Management), and T.Rowe Price Associates, Inc., as well as Fidelity International, Fidelity Management and Research LLC, Janus Henderson Investors, Mubadala, Nuveen, Permodalan Nasional Berhad and Temasek. Leading family groups from Indonesia including Djarum, the Sariaatmadja family and Sinar Mas also participated in the PIPE.

Tan said, a three-year lockup period for its sponsor share indicates Altimeter’s long-term commitment to Grab. 

“As one of the world’s largest and fastest-growing internet companies, Grab is paving the digital path forward for the 670 million citizens of Southeast Asia. We are thrilled that Grab selected Altimeter Capital Markets as their partner to go public and even more excited to become sizable long term owners in this innovative, mission driven company.”  Brad Gerstner, Founder and CEO, Altimeter said.