Singaporean tech giant Grab has agreed to go public through a SPAC (Special Purpose Acquisition Company) merger. It’ll merge withUS-based Altimeter Growth Corp, backed by Altimeter Capital.
According to a report fromReuters,through this deal, the firm would be valued at nearly $40 billion. Because of its varied offerings such as ride-hailing, digital payments, and food delivery, the company’s valuation has doubled in the last 18 months.
The deal also brings a $4 billion-plus investment for Grab underPIPE (private investment in public equity). Altimeter Capital is leading that front with a $750 million contribution; other investors include BlackRock, Fidelity International, Janus Henderson Investors, and Temasek Holdings.
SPAC mergers seem to be a hot choice for companies to go public this year. A recentWSJ reportnoted that in the US, 306 SPACs have raised more than $99 billion just this year — which has already exceeded last year’s $83 million milestone.
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Bloombergnoted that southeast Asian startups are aiming to get listed on NASDAQ through a SPAC merger or a traditional IPO. The report said that the Indonesian travel companyTraveloka will also follow Grab’s footsteps and opt for a SPAC merger that will value it at $5 billion.
Grab, which operates in nine countries, said that it expects its addressable market to growfrom $52 billion in 2020 to $180 billion by 2025.
Story byIvan Mehta
Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.“Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.”
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