There’s a lot at stake with Southeast Asia’s most valuable startup Grab’s upcoming SPAC SPAC Special purpose acquisition company A SPAC is a listed entity whose sole purpose is to merge with or acquire another business and take it public. SPAC deals have fast become an IPO alternative for many companies merger with US investment firm Altimeter Capital. Not least because of the US$40 billion valuation that comes with the Nasdaq listing, making it the largest deal of its kind anywhere in the world.
ticket to ride
The ripple effects of Grab’s US$40 bn record SPAC listing
Grab’s record SPAC deal is key not only to its future, but also for other companies in Southeast Asia that seek to follow in its footsteps. The pressure is on Grab to perform
Loss-making Grab forecasts its transport and food businesses can generate US$1.5 billion on an Ebitda basis in 2023
Grab’s sponsor Altimeter gave it a US$40 billion value—that’s more than double its last valuation and at a more generous multiple than Uber
But Grab needs its financial services businesses to boom if it is to be more than just ‘Southeast Asia’s Uber’
That’s the challenge for CEO Anthony Tan, who will steer Grab’s ship courtesy of having over 60% voting share despite his 2% ownership