South-east Asian ride-hailing and food delivery giant Grab is exploring a listing in the United States this year.
The firm have been encouraged by robust investor appetite for IPOs, a source has revealed, and the move could raise at least US$2 billion – which would make it the largest overseas share offering by a South-east Asian company.
“The market is good and the business is doing better than before. This should work well for public markets,” said the insider.
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It’s claimed the plans, including the size of the issue and timing, have not been finalised and are subject to market conditions. Singapore-based Grab declined to comment.
Grab, whose backers include SoftBank Group Corp and Mitsubishi UFJ Financial Group, has expanded rapidly from its beginnings as a ride-hailing venture in Malaysia in 2012 to become the region’s most valuable start-up worth more than $16 billion.
The company, which also offers financial services and recently gained a digital bank licence in Singapore, said this month that group revenue had recovered to be comfortably above pre-pandemic levels.
BREAKING EVEN
It has also said its ride-hailing business is breaking even in all its operating markets, including Indonesia, its biggest. It expects its food delivery business to break even by the end of the year.
The IPO plans would come after merger discussions with Indonesian rival Gojek were dropped.
Gojek and Indonesian e-commerce leader Tokopedia are in advanced talks for a US$18 billion merger ahead of a potential dual listing in Jakarta and the United States.
- Reuters
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