Grab said to be planning US IPO in 2021

The self-professed ‘super app’ company is reportedly mulling an initial public offering in the US, just weeks after merger talks with Indonesian rival GoJek fell through.

  • Southeast Asia’s most valuable company is said to be considering a listing on the US stock exchange
  • The multi-service platform is aiming to raise at least US$2 billion in the listing, Reuters reported
  • This follows recent unsuccessful merger talks with Indonesian rival GoJek
  • The company said earlier this month that group revenue has recovered to above pre-pandemic levels

Grab gunning for record IPO?

Southeast Asian mobile app Grab is reportedly considering an initial public offering (IPO) in the US later this year.

The ride-hailing, food delivery and payments platform has been encouraged by the investor appetite for IPOs in 2020, and is hoping to raise at least US$2 billion in the listing, according to three sources who spoke to Reuters.

If true, Grab would be seeking to achieve the largest foreign share sale by a Southeast Asian entity ever.

‘The market is good and the business is doing better than before. This should work well for public markets,’ said one of the sources.

The listing size and timing, which will be subject to prevailing market conditions, have yet to be finalised, the sources added. They have not been permitted to speak about the matter.

The company has also declined to comment on the IPO.

What happened to the Grab-GoJek merger?

This news follows Grab’s recent failed merger talks with Indonesian rival GoJek.

In December 2020, amidst reports that both companies were on the verge of inking a merger deal, CEO Anthony Tan had told employees in an internal note that ‘our business momentum is good, and as with any market consolidation rumours, we are the ones in a position to acquire’.

However, discussions fell through, presumably over ownership stake, as well as the management of the Indonesian market post merger.

Then on 05 January 2021, GoJek was said to be considering a merger with Indonesian e-commerce company Tokopedia in an agreement worth some US$18 billion.

Both companies are aligned in their goals regarding a potential IPO, Bloomberg had reported, adding that term sheets have been signed.

Group revenue back on track

For Grab, Southeast Asia’ most valuable startup at the moment, the next two years look highly promising, with it now in the process of building a new digital bank with partner Singtel.

The Grab-Singtel consortium is aiming to formally launch its digital bank in early 2022. For now, it is looking to fill around 200 roles in the areas of product, data, technology, risk, finance and compliance by the end of 2021,.

Grab has a 60% stake in the entity while Singtel holds a 40% stake.

The company also said earlier this month that group revenue has recovered to above pre-Covid-19 levels. It added that its ride-hailing business is close to breaking even across all markets, with the food delivery business on track to break even at the end of this year.

How to trade IPO stocks with IG

IPO trading involves speculating on a company’s share price movements when it lists on a stock exchange.

With IG, you can trade an IPO both before and after the listing.

Learn how to trade IPOs, including how you could gain exposure to a company before it lists with IG's exclusive grey markets, by signing up for a demo or live account here.

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