Singapore-based ride-hailing and food delivery firm Grab Holdings is going public in the US through a merger with US-based Altimeter Growth Corp, a special purpose acquisition company of Altimeter Capital Manage­ment.

Following the merger, Grab will have an initial proforma equity value of about $39.6bn.

As part of the US equity offering, the Singapore-based startup is raising over $4bn from investors, including BlackRock, Fidelity International and T Rowe Price Group.

In the months to come, the merged entity’s stock will trade on the Nasdaq under the ticker GRAB.

Altimeter Capital is injecting about $750m into the food delivery startup. This amount is approximately a fifth of the new funds raised, reported BloombergQuint.

Grab stated that its decision to transform into a public company was based on its robust financial performance in 2020 despite the Covid-19 pandemic.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

In 2020, the firm’s net revenue increased by 70%, but it is yet to become profitable. The firm expects its food delivery business to break even this year with more consumers preferring online food delivery.

The boards of both Grab and Altimeter Growth have given approval to the proposed deal.

The deal is expected to complete over the next few months, following receipt of approval of shareholders.

The transaction will cross vehicle manufacturer Lucid Motors’ $24bn deal signed with a SPAC in February, reported Reuters.

Grab currently has operations in eight countries and close to 400 cities.

The firm began as a ride-hailing business and then moved into food and grocery deliveries, courier services and digital payments. Now it intends to branch out into the insurance and lending business in SouthEast Asia.