Grab’s Nasdaq Debut: A Bumpy Ride for Shares
Day of the Listing
Grab, the Southeast Asian titan behind rides, food delivery, and a handful of financial services, went public on Nasdaq via a SPAC merger valued at a record $40 billion (S$54.8 billion). The stock initially jumped more than 20 percent – a quick sprint up the market hill – before cooling off and ending the day at $8.51, down about 23 percent from its peak.
CEO’s Take‑Home Message
Chief Executive Anthony Tan, right after the shares hit the open, told Reuters, “The price makes no difference to me. I’m going to celebrate tonight and get back to work tomorrow.” A pretty laid‑back mantra for a company that’s just hit its biggest milestone yet.
From App to Global Player
- Founded in 2011 as a hack‑scene idea from Harvard Business School, Grab is now active in 465 cities across eight countries.
- Its services now span food, payments, insurance and investment products.
- The listing is the highest point for this nine‑year‑old Singapore firm.
The Singapore Bell‑Ringing Ceremony
Grab’s first US listing was celebrated in a “bell‑ringing” event hosted by Nasdaq. About 250 attendees – investors, drivers, merchants, and employees – surrounded the ballroom, many wearing the company’s green branding. Emotions ran high as CEO Tan thanked everyone for launching Grab and Southeast Asia’s tech scene onto the global map.
Backstory of the Backdoor
The merger happened after Grab agreed to combine with Altimeter Capital Management’s SPAC, Altimeter Growth Corp, raising $4.5 billion, including $750 million from Altimeter. The infusion aims to give Grab a much larger cash buffer.
Financial Outlook
- SP & P Global Ratings notes the company remains loss‑making with free operating cash flows likely to be negative for the next 12 months.
- Despite the red‑label rating, the market is keen on Grab’s “Financial Group” – a unit seen as a long‑term growth engine.
Regional Crowd‑Pounding Plays
- Southeast Asia’s internet economy is projected to hit $360 billion in gross merchandise value by 2025.
- Competitors like Sea Ltd and Indonesia’s GoTo Group are ramping up, with GoTo planning a local IPO after a $2 billion private raise, followed by a US listing.
What Experts Say
Chris Conforti, partner at Altimeter Capital, described Grab’s financial group as a “bell curve with a wider range of potential outcomes” that could be “extremely large.”
Bonanza for backers
Grab’s Bold Leap: From Malaysian Taxi App to a Regional Powerhouse
Who’s the Big Boss?
CEO Tan, 39 launched Grab as a simple taxi app in Malaysia back in 2012. A few years later, the company shifted its headquarters to Singapore and turned into a full‑blown regional juggernaut offering everything from food delivery to digital payments.
Perspective from the Top
During a recent chat with Reuters, Tan proudly told the world that home‑grown tech firms can punch above their weight and hold their own against global giants. In his words, the message is clear: “We’re not just in the game; we’re winning it.”
Power Shares in the House
- Tan controls 60.4 % of the voting rights.
- Co‑founder and president Ming Maa shares the same stake.
- Collectively, they hold just a tiny 3.3 % ownership slice.
Who’s Been Buying In?
Grab’s public listing has lit up a bonanza for early backers. Big names such as SoftBank, Didi Chuxing, Toyota, Microsoft, MUFG, and even Uber (after it sold its Southeast Asian arm) have all watched their investments flourish.
Financial Pulse Check
- In September, the company trimmed its full‑year sales forecast amid lingering uncertainty over pandemic travel limits.
- Quarterly revenue slid 9 % YoY.
- Adjusted EBITDA swung wider by 66 %, landing at $212 million.
- Yet, the gross merchandise volume reached a record $4 billion.
Profitability Roadmap
The goal: turn profitable on an EBITDA basis by the end of 2023. A big win for the company and its investors alike.
Financing the Future
JPMorgan and Morgan Stanley led the IPO placement, with Evercore and UBS acting as co‑place agents.
