Singaporean tech giant Grab has agreed to go public through a SPAC (Special Purpose Acquisition Company) merger. It’ll merge with US-based Altimeter Growth Corp, backed by Altimeter Capital.
According to a report from Reuters, through this deal, the firm would be valued at nearly $40 billion. Because of its varied offerings such as ride-hailing, digital payments, and food delivery, the company’s valuation has doubled in the last 18 months.
The deal also brings a $4 billion-plus investment for Grab under PIPE (private investment in public equity). Altimeter Capital is leading that front with a $750 million contribution; other investors include BlackRock, Fidelity International, Janus Henderson Investors, and Temasek Holdings.
SPAC mergers seem to be a hot choice for companies to go public this year. A recent WSJ report noted that in the US, 306 SPACs have raised more than $99 billion just this year — which has already exceeded last year’s $83 million milestone.
The 💜 of EU tech
The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!
Bloomberg noted that southeast Asian startups are aiming to get listed on NASDAQ through a SPAC merger or a traditional IPO. The report said that the Indonesian travel company Traveloka will also follow Grab’s footsteps and opt for a SPAC merger that will value it at $5 billion.
Grab, which operates in nine countries, said that it expects its addressable market to grow from $52 billion in 2020 to $180 billion by 2025.
Get the TNW newsletter
Get the most important tech news in your inbox each week.