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Singapore's Grab to go public in record $40bn SPAC deal

Tue 13 April 2021 15:33 | A A A

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(Sharecast News) - Singapore app company Grab is planning to list in the US through a record-sized special purpose acquisition company.

The firm, which offers a one-stop shopstyle service including ride hailing, banking and food delivery struck a deal with US company Altimeter Growth Corp.

SPAC investment, which is a trend that has gained popularity over the past year, values the app at $40bn. Grab's valuation has more than doubled in the last two months.

Through the deal, the app maker will receive $4.5bn in cash, including $4bn of private investment through a public equity arrangement.

"I remember years ago when we were talking to investors, some folks didn't even know where south-east Asia was on a map," said Anthony Tan, co-founder and chief executive of Grab, in an interview on CNBC following the announcement.

"Today we announce what is expected to be the largest US equity offering in south-east Asia [...] it shows validation of the tremendous offering right here in this region, and that the 'super app' strategy works."

The pandemic stoked strong demand for the app, which allows drivers to better cope with the loss of customers during lockdown by making it easier for the public to place orders for home delivery.

Grab recorded $12.5bn in gross merchandise value last year.

Its backers include Japan's SoftBank, Uber Technologies and Chinese ride-hailing company Didi Chuxing, while the merger and flotation has attracted investors including BlackRock, Morgan Stanley, Mubadala of Abu Dhabi and Singapore's Temasek.

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