Grab Expected to Go Public via $40 Billion SPAC Deal — Report

By McKenzie Carpenter Friday, March 12, 2021

Rideshare, food delivery, and fintech companies have grown in popularity as they can provide an essential service for people. Reports indicate Grab, a transportation and logistics startup app company, is expected to go public via a SPAC (special purpose acquisition company) deal.

A delivery driver wearing a surgical mask on a motorcycle.

About the App Business

Founded in 2012, Grab is a Singapore-based super app startup company that offers a variety of transportation, fintech, delivery, and subscription services, among many others. According to Grab’s website, the business has become South East Asia’s largest mobile technology business, and values this region because of the optimism and ambition of the people in this region.

After rapid expansion, the startup app company was reportedly valued at $16 billion, becoming Southeast Asia’s most valuable startup company. In addition, the business has raised $12.1 billion in total funding over numerous investment rounds, with investments from Mitsubishi UFJ Financial Group, Experian Ventures, and SoftBank Vision Fund.

The Wall Street Journal first reported today that the business is in talks for an IPO with Altimeter Capital Management LP via a SPAC deal.

The SPAC Deal

Altimeter Capital Management LP has two SPACs on the New York Stock Exchange, or NYSE, making it unclear which SPAC the startup app company would go public with. Altimeter launched the two SPACs in October and January, raising a combined $850 million. Additionally, according to Markets Insider, Altimeter Growth Corp. and Altimeter Growth Corp. 2 each saw stocks increase as much as 29% and 16% when the news of the story came out.

If the deal is confirmed, the merger could value the app business at $40 billion, making it the largest SPAC deal on record. As part of the deal, the business would raise between $3 billion and $4 billion in a private investment in public equity, or PIPE, funding round.

According to The Wall Street Journal, Grab and Altimeter could announce the deal in the coming weeks, but it could still fall apart as Grab had plans to stage a traditional initial public offering, or IPO, on the NYSE earlier this year. Reuters first reported in January that the business was exploring an IPO listing.

Other SPAC Deal News

Last year was a big year for SPAC deals. In 2020, $82 billion was raised through SPAC deals, and so far the trend has continued into 2021, totaling $70 billion. Additionally, there have been 246 SPAC IPO deals, accounting for 84% of the total number of IPOs.

Another recent large SPAC deal was UMW Holdings Corporation's $16 billion merger with Gores Holdings IV in September 2020. The largest SPAC deal so far in 2021 was that of ecommerce business Coupang at $60 billion.

About the Author

Headshot of McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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