'Grab' Debuts on NASDAQ... Largest Ever SPAC Listing

Corporate Value of 44.5 Trillion KRW
Korean Companies That Invested in Grab Also Hit the 'Jackpot'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The ride-hailing and delivery service platform "Grab," known as the "Uber of Southeast Asia," is set to be listed on the New York Stock Exchange, turning Korean companies that invested early in Grab into "jackpot" winners. Grab is preparing to enter Nasdaq through a merger with a Special Purpose Acquisition Company (SPAC).

According to major foreign media including the AP on the 13th (local time), Grab announced plans to debut on Nasdaq by merging with "Altimeter Growth," a SPAC established by Altimeter Capital, an investment firm based in California, USA. The merged company's valuation was estimated at $39.6 billion (approximately 44.5 trillion KRW). This represents a 2.6-fold surge compared to Grab's valuation of $15 billion in October 2019, just a year and a half ago. It is the largest SPAC listing ever.

Through this listing, Grab is expected to raise up to $4.5 billion (approximately 5 trillion KRW) in cash.

With this merger, Grab is expected to become the most valuable Southeast Asian company listed on the US stock market. Anthony Tan, CEO of Grab, stated, "We are honored that Grab will represent Southeast Asia in the global IPO market."

The listing also raises expectations for the investment returns of domestic companies that invested early in Grab. Hyundai Motor Group invested about 310 billion KRW, SK invested a total of 250 billion KRW including 80 billion KRW from its holding company and major affiliates such as SKT. Mirae Asset Daewoo and Naver invested approximately 170 billion KRW through the "Mirae Asset-Naver Asia Growth Fund." Korea's Stick Investment also invested about 224.5 billion KRW in Grab.

Meanwhile, founded in 2012, Grab started as a ride-hailing service and expanded its business sectors to food and grocery delivery, digital payments, and financial services, growing into a "super app" that offers various services within a single app. It currently operates in eight Southeast Asian countries including Singapore, Malaysia, and Indonesia.