[HONG KONG] South-east Asian ride-hailing giant Grab Holdings has picked banks for a potential US initial public offering (IPO), that could raise at least US$2 billion, according to people familiar with the matter.

Morgan Stanley and JPMorgan Chase & Co have been selected to work on a listing that could happen as soon as the second half of this year, the people said. More banks could be added and details of the offering could change as deliberations continue, said the people, who asked not to be identified as the information is private.

Grab's IPO considerations come after talks to combine with Indonesian rival Gojek stalled. The latter startup is now in advanced discussions to merge with local e-commerce pioneer Tokopedia instead, creating a powerful regional player in online services that may then seek to go public, Bloomberg News reported this month. A Gojek-Tokopedia tie-up could create a South-east Asian powerhouse with a valuation of about US$18 billion and businesses encompassing ride-hailing and payments to online shopping and grocery delivery.

That could threaten Grab's own effort to expand across the region, particularly in the largest market of Indonesia. The Singapore-based company backed by SoftBank Group grew net revenue 70 per cent for 2020 after bouncing back from a Covid-19 trough. The startup, which was last valued at more than US$14 billion, is now angling to delve deeper into online finance and food delivery.

Representatives for Grab, Morgan Stanley and JPMorgan declined to comment.

BLOOMBERG

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