JAKARTA (TheInsiderStories) - One of Southeast Asia’ tech giant, Grab Holdings Inc., it intends to go public in the United States in partnership with special purpose acquisition company (SPAC), Altimeter Growth Corp., (NASDAQ: AGC) under the the symbol “GRAB” in the coming months, its announced on Tuesday.
“Altimeter commits to a three-year lock-up period for its sponsor promote shares, 10 percent of which will go to the recently announced GrabForGood Fund to support programs with long-term social and environmental impact,” wrote the statement.
Grab will receiving US$4.5 billion in cash through private investment in public equity (PIPE) and the proposed transactions represent an expected equity value on a pro-forma basis of approximately $39.6 billion. The company said, through the public listing will reinforce gross merchandise value (GMV) of approximately $12.5 billion in 2020.
The transaction led by $750 million from funds managed by Altimeter with participation from funds and accounts managed or advised by BlackRock, Counterpoint Global (Morgan Stanley Investment Management), and T.Rowe Price Associates, Inc., as well as Fidelity International, Fidelity Management and Research LLC, Janus Henderson Investors, Mubadala, Nuveen, Permodalan Nasional Berhad and Temasek. Leading family groups from Indonesia including Djarum, the Sariaatmadja family and Sinar Mas also participated in the PIPE.
Anthony Tan, Group CEO and co-founder Grab said, “This is a milestone in our journey to open up access for everyone to benefit from the digital economy. As we become a publicly-traded company, we’ll work even harder to create economic empowerment for our communities, because when Southeast Asia succeeds, Grab succeeds.”
While, Brad Gerstner, founder and CEO Altimeter said, “We are thrilled that Grab selected Altimeter Capital Markets as their partner to go public and even more excited to become sizable long term owners in this innovative, mission driven company.”
Across online food delivery, ride-hailing and digital wallet payments, Grab expects its total addressable market to grow from approximately $52 billion in 2020 to more than US$180 billion by 2025. The tech firm posted GMV of approximately $12.5 billion in 2020. In the Southeast Asian market, its core businesses accounting for approximately 72 percent of total regional GMV for ride-hailing, 50 percent of total regional GMV for online food delivery and 23 percent of regional TPV for digital wallet payments in 2020.
Recently, the company has launched the GrabForGood fund was announced with an initial fund size of $275 million, including a personal contribution of $25 million in Grab shares from Tan, together with co-founder Hooi Ling Tan and President Ming Maa. Altimeter is also donating 10 percent of its sponsor promote shares to support the GrabForGood fund, which aims to introduce programs with long-term social and environmental impact.
Grab offers services across mobility, deliveries, financial services and more, in an all-in-one app.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
