Grab made waves earlier this week after confirming its intention to do so Put it to the public in the United States In partnership with Altimeter Growth Corp.
The partnership is the largest blank check company deal ever, and the proposed deal will give Grab a market value of about $ 39.6 billion ($ 53.1 billion).
According to Grab, the merger with SPAC is expected to provide up to $ 4.5 billion in cash revenue.
The combined company expects to trade its shares on the Nasdaq exchange in the coming months.
After this news, Reuters Three insiders said Grab is in the early stages of considering a secondary listing in Singapore, according to three sources familiar with the matter.
They added that this potential listing on the Singapore Stock Exchange would allow Grab to have an investor base close to its regional business headquarters. This will enable customers, drivers and trading partners to easily trade their shares.
The seizure shakes up the SEA economy
Regardless of whether this secondary listing in Singapore will pay off, the listing in the US has already marked a new chapter for the Southeast Asian economy (SEA), and in particular its ecosystem of operation.
It will expand the door for many international investors to take advantage of one of the fastest growing Internet markets in the world. It may also help other regional unicorns to follow suit as the SEA challenges the dominance of the United States and China in the technology landscape.
To date, the only notable internet company listed in the region is Sea, which is a Singapore-based gaming and e-commerce company registered in New York. Its share price has increased nearly five times in the past year, indicating strong investor appetite for high-growth tech companies in the region.
For now, Grab – which has said its EBITDA (EBITDA) will not be profitable until 2023 – needs to show that it can justify its $ 39.6 billion valuation, which is roughly Of twice the value of Google at the time of its initial public offering, when the US search giant was already making a profit.
In a public statement, Grab stated that its decision to become a public company was driven by strong financial performance in 2020, despite COVID-19. At the same time, the company has made great strides towards profitability, with a primary focus on building resilient businesses and achieving sustainable growth.
“As we have become a public company, we will work harder to create economic empowerment for our communities, because when Southeast Asia succeeds, Grab succeeds,” said Anthony Tan, co-founder and CEO of Grab.
Featured Image Credit: PYMNTS
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