Asian ride-hailing and food delivery company Grab Holdings is going public in a special purpose acquisition company (SPAC) deal valued at $40 billion U.S.
Grab is merging with U.S.-based shell company Altimeter in a deal that will lead to a public listing. The merger will be the biggest SPAC deal ever and highlights the frenzy on Wall Street as so-called "reverse mergers" have raised $99 billion U.S. so far this year after a record $83 billion U.S. in 2020.
Singapore-based Grab’s agreement with Altimeter Capital includes a $4 billion U.S. private investment in public equity (PIPE) arrangement from a group of Asian and global investors that includes Fidelity International and Janus Henderson.
The deal for Grab, which was valued at $16 billion U.S. last year, is a win for the company’s early backers such as SoftBank and China’s Didi Chuxing. Last year, Mitsubishi UFJ Financial Group and IT services firm TIS invested $856 million in Grab as the company expanded into financial services.
Grab’s net revenue surged 70% last year, although the company has yet to turn a profit. But Grab expects its biggest segment - the food delivery business - will break even by the end of this year as more consumers shift to online food delivery.
