By
Chimamanda U. Martha
December 26th, 2023
On the 12th of April, Grab completed a SPAC merger with Altimeter Growth Corp. The merger generated almost $40 billion.
Singaporean multinational transport company Grab is reportedly considering a secondary listing in Singapore. Grab’s move for a secondary listing in its home market came after the transport company listed on Nasdaq through a special acquisition company (SPAC) in the US.
Grab Seeks Secondary Listing
Citing reliable sources, Reuters revealed that the secondary listing would make Grab available to investors in the same jurisdiction where its regional business is based. The sources added that listing on Singapore Exchange (SGX) will give Grab’s customers easy access to trade the company shares.
Additionally, the sources noted that the financial details of the secondary listing are in the works.
Also, capital markets and M&A partner at law firm Rajah & Tann, Raymond Tong, commented on reports of Grab’s secondary listing in Singapore. He said:
“For the right issuer, a secondary listing could well be a good move. You can get the best of both worlds. If your home markets are in this region, a Singapore listing can help you tap another pool of investors as there are many family offices and funds based in Singapore.”
Grab’s co-founder Anthony Tan told Reuters that the secured fund would be used for its financial services business, such as digital banks and mobile payments.
Grab’s SPAC Merger
On the 12th of April, Grab completed a SPAC merger with Altimeter Growth Corp (NASDAQ: AGC). The merger generated almost $40 billion, becoming the biggest blank-check company deal in history. In the deal, investors such as BlackRock (NYSE: BLK) will contribute to a $4 billion private investment in a public equity offering. Other participating investors are Fidelity International, Mubadala, Temasek Holdings and Permodalan Nasional Berhad.
The founder and CEO of Silicon Valley-based Altimeter Brad Gerstner said:
“Southeast Asia is one of the fastest growing digital economies in the world, with a population approximately twice the size of the United States. Yet online penetration for food delivery, on-demand mobility and electronic transactions are a fraction of the US and China.”
Founded in 2012 as a ride-hailing business, Grab now offer services across 8 countries and over 40 cities. The company has also extended its services into digital payments, as well as food and groceries deliveries.
Currently, there are 28 companies with a secondary listing on the Singapore Exchange. The companies include Jardine Matheson Holdings (SGX: J36), Top Glove Corporation Berhad (SGX: BVA), and IHH Healthcare (SGX: Q0F).
Furthermore, SGX benefited from the trade war between the Chinese and American governments. As a result of the political tension, Chinese firms seek secondary listings in Chinese. The company with the largest market valuation on SGX is bank DBS Group Ltd (SGX: D05). According to MarketWatch, DBS Group’s market value is about $73 billion. The multinational bank is currently closed at $29, an 0.17% gain over its previous close of $28.95.