Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Grab plunges 21% in biggest Wall Street debut by a Southeast Asian company

Grab plunges 21% in biggest Wall Street debut by a Southeast Asian company

The Southeast Asian unicorn Grab had a rough first day on Wall Street. The Singaporean startup closed down nearly 21% Thursday as it began trading on New York's Nasdaq.

Grab went public by merging with a special-purpose acquisition company, or SPAC. The deal — in which Grab raised $4.5 billion, and was valued at nearly $40 billion — was the biggest of its kind on record, according to data provider Dealogic. It's also the largest US market debut by a Southeast Asian company.

The previous record was held by an Indonesian satellite company, which raised nearly $1.2 billion in 1994, according to data from Refinitiv.

Under the deal, Grab merged with Altimeter Growth Corp (AGC), a SPAC launched by Altimeter Capital, a US investment firm. Shares in the company, now trading under the ticker symbol "GRAB," opened up Thursday nearly 20% above Altimeter's closing price the day before.

But they soon reversed direction, closing at $8.75 per share.

Grab took a relatively unconventional road to market, albeit one that has gained popularity over the past year. Combining with SPACs used to be sneered at on Wall Street, but recently a slew of major companies have chosen to take the same route, including Playboy, DraftKings, and electric vehicle startups Lucid Motors and Arrival.

SPACs are shell companies with limited or no operating assets. They usually go public solely to raise money from investors that is then used to buy existing businesses.

Regulators, though, have stepped up scrutiny of the process. The Securities and Exchange Commission, for example, has tightened its accounting guidance for SPACs, while lawmakers in Congress held a hearing on the matter.

That attention has caused SPAC activity to plummet, and more regulation could be on the way: Bills to tighten rules around SPACs are currently making their way through Congress. One proposal would compel blank check firms to disclose to retail investors the risks of backing shell companies, while another bill could boost their liability for making false or misleading forward-looking statements.

A 'super app'


Through its deal, Grab raised funds from investors including Fidelity, BlackRock, T. Rowe Price, Abu Dhabi sovereign wealth fund Mubadala and Singapore government investment arm Temasek.

Co-founders Anthony Tan and Hooi Ling Tan rang the exchange's opening bell in Singapore on Thursday night in a ceremony including Grab drivers and merchants.

The Malaysian entrepreneurs, who share a surname but are unrelated, founded Grab in 2012. It quickly soared to become Southeast Asia's most valuable private company.

Grab acquired Uber's Southeast Asia business in 2018, and has since expanded into a variety of other services, including food delivery, digital payments and even financial services.

In recent years, the firm has cast itself as a "super app," letting users do everything from booking rides to taking out insurance and loans. More than 25 million people use the app each month to make a transaction, across 465 cities in eight countries.

In an interview Thursday, chief financial officer Peter Oey said that the company would use the proceeds from the listing to double down on its existing playbook.

"We're just getting started in Southeast Asia," he told CNN Business.

Oey argues that there is still "huge opportunity" to grow the firm's core businesses at home. Grocery delivery services in the region are still in their infancy, he said. Meanwhile, ride-hailing in the region is far less established than in China, he added.

Oey also did not rule out the possibility of doing more mergers and acquisitions, noting that "strategic opportunities will come up."

Grab has previously said that it chose to go public in the United States, rather than in Southeast Asia, because it wanted to tap into a larger investor base.

But Oey said Thursday that the company wouldn't rule out the possibility of listing on another exchange at some point. "We're open to Southeast Asia and other opportunities," he added.

Still, the executive emphasized that the company would take it one step at a time.

"For us right now it's [about] making sure that we execute the business and stay focused, and support those shareholders who are in the ride with us," said Oey.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
×