Grab Holdings said it has reached a deal to go public in the U.S. by merging with a special-purpose acquisition company (SPAC) that will value the nine-year-old company at about $39.6 billion.
The ride-hailing and food delivery giant is raising more than $4 billion by combining itself with Altimeter Growth Corp. in what would be the largest acquisition ever by a blank-check company.
Silicon Valley’s Altimeter Capital Management is the sponsor of Altimeter Growth, which listed on the Nasdaq stock exchange in September. The combined entity will be traded under the symbol GRAB in the coming months.
Altimeter Capital has committed $750 million to the deal, which is the largest-ever share sale in the U.S. by a Southeast Asian company. Other investors include BlackRock, Fidelity International, T. Rowe Price and Singaporean state investment firm Temasek.
“Altimeter is investing in a way that demonstrates our aligned values, with a three-year lock-up on their sponsor promote shares and unprecedented contribution of shares to our new GrabForGood endowment fund,” said Grab CEO Anthony Tan.
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The GrabForGood fund was announced last week with an initial fund size of $275 million aimed at addressing long-term social and environmental programs with contributions from Tan along with his cofounder Hooi Ling Tan and president Ming Maa.
Grab was founded in 2012 as a taxi-booking app but grew to become a superapp that provides everything from ride-hailing and food delivery to digital payments. The Singapore-based company now operates across 428 cities in eight countries.
Grab’s net revenue jumped by roughly 70% last year and had recovered to comfortably above pre-pandemic levels, according to a Reuters report.