Grab to list in New York via merger with Altimeter Capital SPAC unit

“Grab, Southeast Asia’s most valuable startup, is set for the largest merger between a private business and a blank cheque company in a deal that will value the SoftBank-backed technology group at about US$35 billion,” reported Financial Times.

Grab could finalize the agreement to go public via merging with one of Altimeter Capital’s SPACs as soon as this week, sources said. Its founder Anthony Tan will hold 2% of the shares of the listed company, according to two people privy to the matter.

The Singapore-based firm will raise around US$2.5 billion in a private investment in public equity (PIPE), with nearly US$1.2 billion coming from the Silicon Valley-based investment firm Altimeter.

The super app claims its revenue grew by 70% in 2020 compared to the year before, and its ride-hailing business is breaking even in all of its operating markets.

According to the report, Grab has raised US$12 billion to date and has roughly US$5 billion in cash reserves, pegging its private valuation at over US$16 billion.