Altimeter Growth Stock Is Trading Higher As Singapore's Grab Eyes Public Listing Via $35B SPAC Merger: FT

SoftBank Group Corp SFTBF SFTBY-backed Singapore’s ride-hailing and financial services start-up Grab is set for a U.S. public listing through Altimeter Capital’s SPAC (special purpose acquisition company) Altimeter Growth Corp AGC, in a deal valued at $35 billion by as early as this week, the Financial Times reports.
Altimeter has procured $850 million for two SPACs. It is renowned for raising additional capital for blank-cheque targets, including U.K.’s second-hand car site Cazoo and online lender SoFi.
Grab will raise around $2.5 billion under a private investment in public equity (PIPE). Altimeter will finance approximately $1.2 billion out of $2.5 billion. Altimeter will also support any share sale under the SPAC deal.
Grab will combine with the fund Altimeter Growth Corp AGC that raised $450 million last year. Altimeter Growth Corp’s shares have gained 25% since listing. Altimeter’s 15.1% stake in Snowflake Inc SNOW data analytics company was valued at close to $4.4 billion upon its U.S. listing last year.
Grab branched out from an Uber Technologies Inc UBER contemporary into food delivery and financial services, including payments, loans, and insurance. The company also procured a digital banking license in Singapore.
Loss-making Grab has raked in $12 billion to date with around $5 billion in cash reserves, accomplishing a valuation of over $16 billion. Grab’s revenue rose 70% year-on-year in 2020. The business was reportedly breaking even in every operating market. Grab’s founder Anthony Tan, will own around 2% of the listed entity. SoftBank’s Vision Fund, a lead Grab investor, could be a significant deal gainer.
Morgan Stanley and JPMorgan are Grab’s deal advisors.
Grab’s Indonesian rival Gojek is also targeting a merger with e-commerce company Tokopedia before a listing.
Price action: AGC shares traded higher by 13.9% at $14.46 in the premarket session on the last check Wednesday.

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