HONG KONG (AP) – Southeast Asia’s largest car rental company, Grab, crashed after its market debut on Thursday following a $ 40 billion merger in a deal to acquire a special purpose vehicle.
The Singapore-based company debuted on the Nasdaq more than seven months after it announced plans to merge with US-based Altimeter Growth Corp into SPAC. The company started trading under the GRAB ticker.
During midday trading, shares fell 15% to $ 9.37, while broader markets rallied. They opened at $ 13.06.
The Grab listing is the largest Southeast Asian company in the United States, generating $ 4.5 billion in cash for Grab.
Founded by CEO Anthony Tang and co-founder Hoi Ling Tang (not a relative) in 2012, Grab started out as a passenger calling company but later expanded to offer other services such as food and takeaway delivery, digital payments, and financial services. …
He now works in 465 cities in eight countries in Southeast Asia – Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Millions of users, as well as drivers and sellers, have used the app, either for its services or for making money.
“This is Grab’s mission to propel Southeast Asia forward by creating economic opportunity for all,” CEO Anthony Tan said at the Grab bell ringing ceremony in Singapore.
Along with hundreds of Grab employees, drivers and sales partners at Thursday’s ceremony, Tan and his co-founder banged their fists after ringing the bell that kicked off Grab’s market debut on the Nasdaq.
Because customers turn to so many different services, Grab calls itself a “super receiver.” The company is currently still unprofitable as it continues to expand its services across the region.
Grab acquired Uber’s Southeast Asia business in 2018. The company’s third-quarter revenue was $ 157 million, down 9% from the same period last year due to a slowdown in its mobile business due to restrictions in Vietnam.
In September, the company lowered its annual forecasts, citing uncertainty over COVID-19 restrictions amid the spread of the Delta variant of the coronavirus.
SPAC mergers have gained in popularity over the past year because they allow companies to go public and raise capital more cheaply and faster than using a conventional IPO process. When SPAC acquires a target, the acquired company takes up the SPAC listing and usually receives a new stock ticker.