Southeast Asia’s biggest ride-hailing and food delivery firm Grab Holdings is in talks for an IPO through a merger with a US SPAC. The deal could value the company at nearly $40 billion, people familiar with the matter said. A deal, if confirmed, would make it the largest ever blank-check transaction.
Will Grab really opt for a SPAC-route IPO?
The sources, though, said that Singapore-based Grab had not finalised any deal yet. Grab has noted numerous achievements over the past few years. The company expanded rapidly from its beginnings as a ride-hailing firm in 2012. Over years, Grab is currently Southeast Asia’s most valuable startup worth more than $16 billion.
Two sources said on Friday that Grab was in talks with Silicon Valley-based technology-focused investment firm Altimeter Capital Management. Though, Grab had also held discussions with other so-called special purpose acquisition companies (SPACs).
Altimeter has backed two SPACs – Altimeter Growth Corp and Altimeter Growth Corp 2.
Reuters first reported in January, citing sources, that Grab was exploring a listing in the United States and its IPO could raise at least $2 billion.
Sources from Reuters, however, thought that Grab could still go through a traditional listing, as Grab had hired Wall Street banks earlier this year.
Altimeter did not immediately respond to a Reuters request for comment, while Grab declined to comment.
Grab is backed by many global investors including SoftBank Group Corp and Mitsubishi UFJ Financial Group.
The Wall Street Journal reported on Thursday that Grab was in talks with Altimeter. It did not specify which of Alitmeter’s SPACs Grab was in talks with.
It said Grab is expected to raise between $3 billion and $4 billion from private investors, as part of the SPAC merger.
Read also: Grab to Assist COVID-19 Vaccination on Some Countries
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