Leading Southeast Asian ride-hailing and food delivery company, Grab, said to be exploring the option of listing in the United States in 2021
Grab seems to have been encouraged by robust investor appetite for initial public offerings, as a source has it that the ride-hailing and food delivery giant is said to list in the United States in 2021. The move resonates with the company’s goal of raising more funds to support their expansion plans.
According to sources, the initial public offering could raise as much as $2 billion. If the feat is achieved, it could make it the largest overseas share offering by a Southeast Asian company.
“The market is good and the business is doing better than before. This should work well for public markets,” the source said.
The sources also revealed that the plans will include the size of the issue and timing, which are yet to be finalized and are subject to market conditions. While the sources have declined to reveal their identity on the condition that there is no authorization to reveal information about the matter, Singapore-based Grab has also refused to comment on the potential initial public offering.
Grab has a good number of A-list backers that include SoftBank Group Corp and Mitsubishi UFJ Financial Group. The ride-hailing and food delivery company has continued to expand their reach, growing rapidly from just a ride-hailing venture in Malaysia in 2012 to probably the most valuable startup in the region, with an estimated worth of over $16 billion. The company also offers financial services and recently obtained a digital bank license in Singapore. The recent feats must have boosted the company’s figures, recently stating that group revenue had recovered to be comfortably above pre-pandemic levels.
Grab has also revealed that the ride-hailing aspect of its business is breaking even in all its operating markets. This includes Indonesia, which currently ranks as the company’s biggest market. The company also expects the food delivery side of its business to enjoy the same fate before the end of 2021.
The offering plans would likely come after merger discussions with Indonesian rival Gojek were dropped. Gojek and Indonesian e-commerce leader Tokopedia are in advanced talks for an $18 billion merger, which could follow a potential dual listing in Jakarta and the United States.
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