Grab Holdings Inc. in talks to go public through a merger with SPAC that could value the start-up of Southeast Asian riders at up to $ 40 billion, making it the largest deal of its kind ever.
The Singapore-based company is talking about a contract with a special purpose construction company linked to Altimeter Capital Management LP that would be worth between $ 35 billion and $ 40 billion, according to people familiar with the matter. (Altimeter has two SPACS; could not learn which one is talking to Grab.)
As part of the deal, Grab raised between $ 3 billion and $ 4 billion in so-called PIPE, a funding round that will typically accompany the SPAC union, the people said. That amount may still change as Grab and Altimeter begin to meet with each other ‘s money and other investors soon, some people said.
The parties could announce the agreement in the next few weeks, although talks could still fall apart and Grab could return to an earlier plan to put a traditional IPO on the U.S. platform. this year.
If they move forward with an SPAC contract, it would be a sign of water in a recent explosion of these deals, in which an empty shell raises money in an initial public offering with plans to find one or more companies for to join them. In some cases the SPAC only ends with a slight slowdown of the new public target.
So far this year, $ 70 billion-plus has been raised for SPACs, which make up more than 70% of all public stock sales, according to Dealogic. Several companies are talking for a SPAC merger or have already agreed to one including office sharing company WeWork, maker of online picture books Shutterfly Inc. and online lender Social Finance Inc.
In addition to surfing, Grab, founded in 2011, delivers groceries and other items and provides digital financial services to merchants.
Sponsors include SoftBank Group Corp.
, Uber Technologies Inc.
and Toyota Motor Corp.
It was last publicly valued at about $ 15 billion in a fundraising round in October 2019, according to PitchBook.
Altimeter SPACs – Altimeter Growth Corp.
and Altimeter Growth Corp. – raised $ 450 million and $ 400 million in October and January IPOs, respectively. Altimeter Capital, of Menlo Park, Calif., Owns about $ 16 billion, and invests primarily in technology companies.
The company has amassed a series of successful investments and was one of the key partners in the January funding round of Roblox Corp.
built ahead of its IPO at $ 45 a share. In its first installment Wednesday, shares of the videogame platform traded more than 50% above that level and continued to rise Thursday morning.
SoftBank Japan, which has invested through the Vision Fund, is also poised to make a big win on Grab.
Private companies are flooding in with special purpose construction companies, or SPACs, to bypass the traditional process of IPO and public listing. WSJ explains why some critics say it is not worth investing in these blank check companies. Photo: Zoë Soriano / WSJ
Write to Maureen Farrell at [email protected]
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