Grab Allegedly Considering Secondary Listing In Singapore
Grab made waves earlier this week after confirming its intention to go public in the United States in partnership with Altimeter Growth Corp.
The partnership is the largest transaction ever recorded by a blank check company, and the proposed transaction will give Grab a market value of approximately US $ 39.6 billion (S $ 53.1 billion).
According to Grab, the merger with the Special Purpose Acquisition Company (SPAC) is expected to bring them up to $ 4.5 billion in cash.
The merged company expects its shares to trade on the Nasdaq in the coming months.
Following the news, Reuters reported today that 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 where its regional operations are based. This will allow customers, drivers and merchant partners easier access to trade its shares.
Grab disrupts SEA’s economy
Regardless of whether this secondary listing in Singapore will materialize, the US listing has already marked a new chapter for the Southeast Asian (SEA) economy, and in particular its startup ecosystem.
This will widen the door for various international investors to access one of the fastest growing internet markets in the world. It may also help other regional unicorns follow suit as SEA challenges US and Chinese dominance in the tech scene.
The only notable publicly traded internet company in the region so far is Sea, a Singapore-based, New York-listed online gaming and e-commerce company. Its share price quintupled last year, showing the huge appetite of investors for high-growth tech companies in the region.
For now, Grab – which has said its EBITDA (earnings before interest, taxes, depreciation and amortization) will only become profitable in 2023 – has to show it can justify its valuation of $ 39.6 billion, or nearly double the value of Google at the time. of its IPO, when the American research giant was already profitable.
In a public statement, Grab said its decision to become a state-owned company was driven by strong financial performance in 2020, despite COVID-19. At the same time, the company has made significant strides towards profitability, with a focus on building a resilient business and creating sustainable growth.
“As we become a publicly traded company, we will work even harder to create the economic empowerment of 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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