EUR 91.90 For Business Accounts Only

Grab SPAC listing

On 13th Apr 2021, Grab announced that it planned to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn. It would raise around US$4.5bn cash through the transaction.

While the transaction was originally slated to close in Jul 21, after repeated delays the stock is now set to list on the 2nd Dec 21.

Grab’s delivery division has continued to grow well over 9M21, with its GMV up 57.4% YoY. However, its mobility and to a certain extent its financial services division have continued to suffer owing to COVID-19 induced lockdowns resulting in their GMVs declining by 15% and increasing by 23% YoY, respectively. Thus, despite the lower 2020 base, its overall GMV growth was only at 29.6% YoY. Although, its overall adjusted net sales grew by 55% YoY, driven by 77.6% increase in delivery adjusted net sales.

Although, even the growth of its delivery division has come on the back of increase in consumer incentives being provided, while its overall monthly transacting users haven’t grown much despite the growth in delivery and financial services.

Looking at the company’s valuation, at the current share price, each of the stock’s divisions would imply a valuation higher than its respective peer set average. We see no clear reasons for why it should command those multiples.