Grab goes public on NASDAQ on December 2 Singapore-based ride-hailing and e-commerce company Grab went public on the Nasdaq through a special purpose acquisition company (SPAC) on December 2, and its share price fell nearly 21%, shocking investors. The stock price opened at $13.06 and the intraday high was $13.29, but then fell to an intraday low of $8.13, and finally closed at $8.75. The stock price fell more than 20% from the previous trading day as a SPAC called Altimeter Growth…
Singapore-based ride-hailing and e-commerce company Grab went public on the Nasdaq through a special purpose acquisition company (SPAC) on December 2, and its share price dropped nearly 21%, shocking investors.
The stock price opened at $13.06 and the intraday high was $13.29, but then fell to an intraday low of $8.13, and finally closed at $8.75, which was down more than 20% from the previous trading day. A SPAC called Altimeter Growth Corporation closed at 11.01. Dollar.
This decline dragged down the company’s market value. At the close of the first trading day, the company merged with SPAC, and the market value reached a record $40 billion. In early trading on December 3, the stock price rebounded only slightly by 2% to 3%.
Investors are not happy
Grab’s well-known investors, including Singapore’s sovereign investment fund Temasek, U.S. investment giants BlackRock and Fidelity, and Abu Dhabi government fund Mubadala, are said to have the largest performance in the history of Southeast Asia’s largest ride and delivery company The performance is not funny. A Southeast Asian company’s listing in the United States is an important event for its peers that deserves attention. For example, Indonesia’s GoTo also plans to list SPAC in the United States.
Grab raised US$4.5 billion in the listing and said it will use the proceeds to expand regionally in Southeast Asia and East Asia, and technically provide new products for its “super apps”. The company also does not rule out mergers and acquisitions to prevent “strategic opportunities”.
Grab has previously stated that it chose to list in the United States rather than Southeast Asia because it wants to take advantage of a larger investor base. But the possibility of listing on Southeast Asian exchanges at some point still exists.
Not yet profitable
Founded in 2021, Grab currently operates in nearly 470 cities in eight markets in Southeast Asia, has 700,000 drivers, and provides 187 million users with food delivery, payment and financial services, as well as online car-hailing services.
The company is not yet profitable. The third-quarter results announced in November last year showed a loss of US$988 million, and revenue was down 9% from the same period last year.
