Grab starts trading on Nasdaq after record SPAC merger

                           

Grab, Southeast Asia’s largest ride-hailing and delivery firm, began trading on the Nasdaq stock exchange on Thursday (Dec 2) after a record US$40 billion merger with a special purpose acquisition company (SPAC).

Its shares were trading under the ticker symbol “GRAB”. Shares of Grab rose 18 per cent in their US market debut on Thursday.

Grab’s co-founders Anthony Tan and Tan Hooi Ling rang the opening bell at about 10.30pm at a ceremony held at the Shangri-La Hotel in Singapore, sparking loud cheers and claps from the crowd.

They were joined on stage by representatives from the driver, delivery and merchant-partner communities.

Thursday’s event, which was attended by more than 200 people, including executives from Nasdaq, as well as Grab’s investors and employees, was Nasdaq’s “first-ever opening bell ceremony” to be hosted in Southeast Asia.

In a speech delivered at the start of the bell ringing ceremony, Mr Anthony Tan said: “Today we shine a spotlight on Southeast Asia, and how its homegrown tech companies are powering new possibilities for the region’s 660 million people."

He added: “From a single-country, taxi-hailing app, Grab is now a leading super app, enabling consumers to eat, ride and pay in eight countries and over 400 cities.

“None of this would have been possible without the dedication and grit of Grabbers and the support of our consumers, investors, business- and government-partners."

Speaking at the ceremony, Nasdaq’s Asia-Pacific chairman Bob McCooey said Grab’s opening bell ceremony was “really special”. 

“Anthony and his team worked many long hours and late nights to bring what is traditionally a New York event to their home region here. Why? Because they wanted to be in Southeast Asia, where Grab started, and celebrate this momentous occasion with all of you - people that made Grab what it is today," he said.

“With Grab’s listing today, we are part of a historic event - the largest ever US public listing of a Southeast Asian company. Congratulations,” added Mr McCooey.

The listing came eight months after the Singapore-headquartered firm announced its plan to merge with Altimeter Growth Corp (AGC). The deal was originally slated for completion in the third quarter of this year, but was delayed as Grab finalised a financial audit of its accounts.

Last month, the company reported a 9 per cent decline in third-quarter revenue to US$157 million as its mobility business was hit by COVID-19 curbs in some countries in the region.

Amid the fall in revenue, Grab sank further into the red. Its adjusted loss before interest, taxes, depreciation and amortisation widened 66 per cent to US$212 million for the quarter.

The deal was given the green light by AGC’s investors earlier this week at an extraordinary general meeting, clearing the final hurdle for a market listing.

As part of the SPAC transaction, Grab will receive a cash injection of US$4.5 billion.

Grab was founded by Mr Anthony Tan, its chief executive, and Mr Tan Hooi Ling, who developed the firm from an idea for a Harvard Business School venture competition in 2011.

It started off as a taxi app in Malaysia the following year, before expanding into a regional operation with a range of services. Grab now operates across 465 cities in eight countries, offering food deliveries, payments, insurance and investment products.

Last year, it secured a digital full bank licence in Singapore in a partnership with local telco Singtel.

Some experts have described Grab’s listing as a “key barometer and potential milestone” for Southeast Asia’s digital economy, given how it will mark the biggest market debut for a company from this part of the world.