Beautiful Virgin Islands

Saturday, Feb 22, 2025

Grab plunges 21% in biggest Wall Street debut by a Southeast Asian company

Grab plunges 21% in biggest Wall Street debut by a Southeast Asian company

The Southeast Asian unicorn Grab had a rough first day on Wall Street. The Singaporean startup closed down nearly 21% Thursday as it began trading on New York's Nasdaq.

Grab went public by merging with a special-purpose acquisition company, or SPAC. The deal — in which Grab raised $4.5 billion, and was valued at nearly $40 billion — was the biggest of its kind on record, according to data provider Dealogic. It's also the largest US market debut by a Southeast Asian company.

The previous record was held by an Indonesian satellite company, which raised nearly $1.2 billion in 1994, according to data from Refinitiv.

Under the deal, Grab merged with Altimeter Growth Corp (AGC), a SPAC launched by Altimeter Capital, a US investment firm. Shares in the company, now trading under the ticker symbol "GRAB," opened up Thursday nearly 20% above Altimeter's closing price the day before.

But they soon reversed direction, closing at $8.75 per share.

Grab took a relatively unconventional road to market, albeit one that has gained popularity over the past year. Combining with SPACs used to be sneered at on Wall Street, but recently a slew of major companies have chosen to take the same route, including Playboy, DraftKings, and electric vehicle startups Lucid Motors and Arrival.

SPACs are shell companies with limited or no operating assets. They usually go public solely to raise money from investors that is then used to buy existing businesses.

Regulators, though, have stepped up scrutiny of the process. The Securities and Exchange Commission, for example, has tightened its accounting guidance for SPACs, while lawmakers in Congress held a hearing on the matter.

That attention has caused SPAC activity to plummet, and more regulation could be on the way: Bills to tighten rules around SPACs are currently making their way through Congress. One proposal would compel blank check firms to disclose to retail investors the risks of backing shell companies, while another bill could boost their liability for making false or misleading forward-looking statements.

A 'super app'


Through its deal, Grab raised funds from investors including Fidelity, BlackRock, T. Rowe Price, Abu Dhabi sovereign wealth fund Mubadala and Singapore government investment arm Temasek.

Co-founders Anthony Tan and Hooi Ling Tan rang the exchange's opening bell in Singapore on Thursday night in a ceremony including Grab drivers and merchants.

The Malaysian entrepreneurs, who share a surname but are unrelated, founded Grab in 2012. It quickly soared to become Southeast Asia's most valuable private company.

Grab acquired Uber's Southeast Asia business in 2018, and has since expanded into a variety of other services, including food delivery, digital payments and even financial services.

In recent years, the firm has cast itself as a "super app," letting users do everything from booking rides to taking out insurance and loans. More than 25 million people use the app each month to make a transaction, across 465 cities in eight countries.

In an interview Thursday, chief financial officer Peter Oey said that the company would use the proceeds from the listing to double down on its existing playbook.

"We're just getting started in Southeast Asia," he told CNN Business.

Oey argues that there is still "huge opportunity" to grow the firm's core businesses at home. Grocery delivery services in the region are still in their infancy, he said. Meanwhile, ride-hailing in the region is far less established than in China, he added.

Oey also did not rule out the possibility of doing more mergers and acquisitions, noting that "strategic opportunities will come up."

Grab has previously said that it chose to go public in the United States, rather than in Southeast Asia, because it wanted to tap into a larger investor base.

But Oey said Thursday that the company wouldn't rule out the possibility of listing on another exchange at some point. "We're open to Southeast Asia and other opportunities," he added.

Still, the executive emphasized that the company would take it one step at a time.

"For us right now it's [about] making sure that we execute the business and stay focused, and support those shareholders who are in the ride with us," said Oey.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×