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SoftBank-backed Grab begins trading after completing SPAC merger

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Indonesian Grab Bicycle Riders are waiting in Jakarta for their passengers

Afif C. Kusuma | iStock Editorial | Getty Images

Southeast Asia’s largest ride-hailing company GrabOn Thursday, the Nasdaq began trading and became the first company ever to complete a SPAC merger. After a deal was made with GRAB, the shares were opened on Thursday at $13.06 each under the ticker symbol “GRAB.” Altimeter Growth Corp.They valued the value of four-times. CNBC Disruptor 50 company at nearly $40 billion.

In mid-morning trades on Thursday, grab shares were lower.

Grab is a well-known, founder-led and mission-driven company that has made a significant impact on the lives and livelihoods of its customers. [The company]Altimeter Capital’s CEO Brad Gerstner announced that Altimeter Capital has seen steady growth during the Pandemic, and was playing an important role in the digitization in Southeast Asia. 

Grab, ranked No. 16 on last year’s CNBC Disruptor 50 list, delivers an array of digital services such as transportation, food delivery, hotel bookings, online banking, mobile payments and insurance services from its app — earning the “super app” title. The company operates in the majority of Southeast Asia and serves more than 187,000,000 users in 465 cities in eight countries. However, the revenue of the company fell 9% year over year as net losses increased to $988million, an increase from $621million.

We don’t see growth and profitability in a mutually exclusive way. Grab CEO Anthony Tan, cofounder of Grab and market leader in Grab’s verticals, said Tuesday that the company operates in an area with high market potential and low penetration.Squawk Box.” “We believe we can be cost leaders.”

A SPAC, which stands for special purpose acquisition company, is created to raise capital from public markets and then use that cash to merge with a private company and take it public within a two-year timeframe.

SPAC investors don’t know the identity or the target company. Wolfe Research data shows that there are over 400 SPACs currently looking to merge with a target firm after a record year.

Altimeter Capital Management managed a record 4 billion dollar private placement in the Grab deal. PIPE financing is a way for companies to get capital from a limited number of investors in order to make their final market debut. BlackRock, T. Rowe Price Associates, Morgan StanleyCounterpoint Global is an investment management arm. Janus Henderson Investors are also participating.

“Anthony, [Tan Hooi] Ling, and the rest of the talented management team at Grab have built a superapp across mobility, delivery, and financial services — together which has the potential to fuel the dramatically changing and growing digital economy in Southeast Asia”, said Denny Fish, portfolio manager and technology sector lead at Janus Henderson Investors said in an email to CNBC. Grab’s purpose-based mission puts it in an exceptional position to reap the benefits of this historic shift.

This proprietary CNBC SPAC 50 IndexThe market-cap index focuses on 50 of the most significant pre-merger blank checks deals. It was high earlier this year, but it has been in decline since then and now is negative. This is the The CNBC SPAC Post Deal IndexIt is one of the most important SPACs in market, and has announced an acquisition target. However, its gains for the year have been erased.

Still, there is a market for SPAC. staged a comebackPrior to the current market turmoil that was triggered by the Omicron variant, there were eight months of record issuance as the industry continued to face regulatory hurdles. SPACInsider’s calculations and CNBC estimates show that October had nearly twice the amount of September deals and was even higher than last year.

— CNBC’s Yun Li contributed to this report.

Grab has been awarded four times. CNBC Disruptor 50 company. Sign up for our weekly, original newsletter that goes beyond the annual Disruptor 50 list, offering a closer look at start-up trends, and founders who continue to innovate across every sector of the economy.

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