GRAB on Tuesday said it will list in the US via a merger with Altimeter Growth, a special purpose acquisition company (SPAC), that is expected to value the group at about US$39.6 billion. This is set to be the largest-ever deal of its kind.
Grab expects to raise about US$4.5 billion in cash proceeds from the transaction. This includes more than US$4 billion from a fully committed PIPE (private investment in public equity) deal led by funds managed by Altimeter Capital Management, which committed US$750 million.
The PIPE deal also drew participation from funds and accounts managed or advised by BlackRock, Counterpoint Global (Morgan Stanley Investment Management) and T. Rowe Price Associates.
Other investors include Temasek, Fidelity International, Fidelity Management and Research, Janus Henderson Investors, Mubadala, Nuveen and Permodalan Nasional Berhad; leading family groups from Indonesia including Djarum, the Sariaatmadja family and Sinar Mas also invested.
Altimeter's sponsor promote shares - the equity in the SPAC that Altimeter took in exchange for finding a company to take public - are subject to a three-year lock-up period. Altimeter is also donating 10 per cent of its promote shares to support the GrabForGood fund announced last week, which was set up to support long-term social and environmental impact programmes.
The proposed transactions have been approved by the boards of directors of both Grab and Altimeter Growth. The deals are expected to close in the coming months, subject to shareholder approvals and other customary closing conditions.
Post-merger, the combined company will have its securities traded on Nasdaq under the symbol "GRAB".
Evercore acted as lead financial advisor to Grab, while JP Morgan and Morgan Stanley Asia (Singapore) were co-advisors. JP Morgan and Morgan Stanley & Co acted as lead placement agents, with Evercore and UBS as co-placement agents to Altimeter Growth on the PIPE deal.
Grab said that across online food delivery, ride hailing and digital wallet payments, it expects its total addressable market to grow from about US$52 billion in 2020 to more than US$180 billion by 2025.
In 2020, the company posted gross merchandise value (GMV) of about US$12.5 billion, surpassing pre-pandemic levels and more than doubling from 2018. According to Euromonitor, Grab's core verticals accounted for 72 per cent of total regional GMV for ride hailing, 50 per cent of total regional GMV for online food delivery and 23 per cent of regional total payment value for digital wallet payments in 2020.
The company said it achieved positive segment Ebitda (earnings before interest, tax, depreciation and amortisation) in mobility across all markets, and positive segment Ebitda in deliveries in five out of six countries.
Anthony Tan, Group chief executive and co-founder of Grab said: "It gives us immense pride to represent South-east Asia in the global public markets. This is a milestone in our journey to open up access for everyone to benefit from the digital economy."