Southeast Asia’s Grab considering US IPO this year


Southeast Asian ride-hailing and food delivery giant Grab is researching a list in the United States this year, encouraged by strong investor appetite for IPOs, a number of sources familiar with the matter have told journalists.

Catch’s IPO could raise at least $2 billion, one of the sources said, which will likely make it the biggest overseas share offering with a Southeast Asian firm.

“The market is good and the business is doing better than before.

The programs, for example, size of the issue and timing, have not been finalised and are subject to market conditions, said the sources, who declined to be identified as they weren’t authorised to talk about the matter.

Singapore-based Grab declined comment on the possible IPO.

The company has raised over $10 billion since it will become a one-stop store for services such as food delivery, insurance and payments from Southeast Asia, home to approximately 650 million people. It gained an electronic bank licence in Singapore.

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Grab’s total group net earnings jumped by roughly 70% year on year in 2020 and has regained to be comfortably above pre-pandemic levels.

One of those sources said he anticipates Grab’s IPO to raise substantially greater than $2 billion as some of its own long-term investors cut stakes and new investors come on board.

Catch has said its ride-hailing company is breaking even in all its working markets, such as Indonesia, the biggest. It expects its own food delivery business to break even by the end of 2021.

The IPO plans could come after merger talks with Indonesian rival Gojek were derailed.

Gojek and Indonesian e-commerce leader Tokopedia are in advanced talks to get a 18 billion merger before a possible dual listing in Jakarta and the United States, journalists at our partner news agency Reuters reported this month.

As customers increasingly adopt online services amid lockdowns to protect against COVID-19 from spreading are paying more attention on market leaders.

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Grab captured international attention when Uber sold its Southeast Asia company to the firm in 2018 after a costly five-year struggle and in return took a bet in Grab.

It currently works in 397 cities across eight Southeast Asian countries and its own app has seen 214 million downloads. Catch’s food delivery business overtook the older transport department to become the organization’s biggest segment this past year.

“It’s quite clear that investors are rewarding growth and market share,” said the second source, pointing to a 15-fold surge in shares of Singapore-based e-commerce, gaming and payments firm Sea since its 2017 set in New York.

The team at Platform Executive hope you have enjoyed this news article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Anshuman Daga. Editing by Sumeet Chatterjee, Edwina Gibbs and Edmund Blair.

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