Grab made waves earlier this week after reiterating his intention to work with Altimeter Growth Corp. to go public in the US.
This partnership is the largest blank check company ever completed and the proposed transaction will bring Grab a market value of approximately $ 39.6 billion (S $ 53.1 billion).
Grab said the merger with the SPAC will generate up to $ 4.5 billion in cash income.
The combined company expects its shares to trade on the Nasdaq in the coming months.
Following the news, Reuters reported today that, according to three sources familiar with the matter, Grab is in the early stages of considering a secondary listing in Singapore.
They added that this potential listing on the Singapore Stock Exchange would allow Grab to have an investor base close to the regional business. This gives customers, drivers and trading partners easier access to trading their stocks.
Grab shakes SEA's economy
Regardless of whether this secondary listing comes into effect in Singapore, the US listing has already marked a new chapter for the Southeast Asian economy (SEA) and especially for the startup ecosystem.
This will open the door for various international investors to enter one of the fastest growing internet markets in the world. It could also help other regional unicorns to follow suit, as SEA questions the dominance of the US and China in the tech scene.
So far, Sea, a Singapore-based and New York-listed online gaming and e-commerce company, is the only well-known publicly traded Internet company in the region. The share price has increased almost fivefold in the past year, which shows the great appetite of investors for high-growth technology companies in the region.
Photo credit: grave
Grab currently has to prove that EBITDA (earnings before interest, taxes, depreciation and amortization) will not be profitable until 2023. It has to prove that it can justify its valuation of $ 39.6 billion, which is almost double Google's value from its IPO when the US search giant was already profitable.
In a public statement, Grab said his decision to become a public company was driven by strong financial performance in 2020 despite COVID-19. At the same time, the company has made significant strides toward profitability, with an emphasis on building a resilient business and delivering sustainable growth.
"When we become a public company we will work even harder to create economic empowerment for our communities because if Southeast Asia is successful, Grab is successful," said Anthony Tan, Grab co-founder and CEO.
Selected image source: PYMNTS