For The Stock Exchange, Grab Merges With American Companies

Illustration grab (dock. Between)

JAKARTA - Ride-hailing company Grab Holdings has reportedly approved a planned merger with U.S.-based Altimeter Growth Corp. The deal allows Grab to list on the stock exchange.

"It is our pride to be able to represent Southeast Asia in the global open market. This step is an achievement of our journey to provide everyone with access to enjoy the progress of the digital economy", Grab CEO Anthony Tan said in a press statement on Wednesday, April 14.

Grab will make an initial public offering (IPO) and become a U.S. publicly listed company in collaboration with Altimeter Growth Corp. GRAB shares will be traded in the next few months.

Their decision to IPO was based on financial performance in 2020, in the midst of the coronavirus pandemic, Grab recorded a gross merchandise value of approximately USD 12.5 billion. These values exceeded their GMV figures before the pandemic and doubled compared to 2018.

At the Southeast Asian level, Grab holds 72 percent of total GMV for transportation or ride-hailing services and 50 percent of total GMV for food delivery services. Meanwhile, Grab also owns 23 percent of total payments volume (TPV) for payments with digital wallets.

Later, Grab will be listed on the United States stock exchange under a business agreement with Altimeter Growth. According to Altimeter Growth and Grab's plan to be jointly owned by the new holding company, the joint company is predicted to have an equity valuation, based on Pro-forma, worth USD 39.6 billion.