Ride-hailing giant Grab reportedly in talks over $40bn SPAC deal
Ride-hailing firm Grab is reportedly in talks about going public through what would be the biggest SPAC deal ever signed.
According to the Wall Street Journal, the Singapore-based firm is in talks with a SPAC – special-purpose acquisition company – linked with Altimeter Capital Management for a deal that would value it at up to $40bn.
As part of the deal, Grab could be in line for a $3bn and $4bn funding raise, sources told the WSJ.
Spacs – so-called “blank cheque” firms which offer a backdoor to a company hoping to list – are having something of a moment.
They raise capital by going public with the purpose of then acquiring an existing company. Terms usually require the vehicles to secure a deal within two years or return the cash to investors.
Around 180 Spacs have filed in New York alone this year, and European cities are now hoping to muscle in on the action.
The Grab deal could be announced in the coming weeks, but could yet fall through, sources warned.
Alternatively, Grab could fall back on a previous plan to list through traditional IPO on one of the US’ main markets this year.
The firm, which was founded in 2012, currently operates across Singapore, Malaysia, Cambodia, Indonesia, Myanmar, Philippines, Thailand, Vietnam and Japan.
It is Southeast Asia’s first “decacorn” – a startup with a valuation of over $10bn.
City PM has contacted Grab and Altimeter for comment.