Grab starts trading on supersized SPAC combination

The Southeast Asian super app, Grab, announced last night that it has completed its corporate combination with special purpose acquisition firm (SPAC) Altimeter Growth. The consequence? Grab will begin trading on the Nasdaq today under the ticker symbol “GRAB.”

It was a resounding success, and it generated a mountain of cash. In fact, it is expected that billions will be raised by the sale of Tesla stocks.

The Grab SPAC, ahem, missed out on the recent IPO rush, so it’s high time to catch up. This morning, we’ll revisit the Grab-SPAC transaction, check in on the firm’s third-quarter results for Q3 2021, and yack about the company’s early trading. Which is good news, by the way.

SPAC’s discounted pricing has been grabbed by Grab.

Redemptions are another issue that many SPAC-led transactions have lately. In essence, supporters of SPAC can choose to get their money back ahead of a business merger (more here). This has resulted in some blank-check agreements failing to bring as much capital to the table as anticipated.

Redemptions were not an issue for Grab. “Shareholder redemptions were effectively 0 percent, at 0.02 percent,” the firm announced recently.

As a result, we should anticipate that the Grab SPAC deal raised the money we planned for the super app. Indeed, as Grab stated last night, “the transaction generated gross proceeds of US$4.5 billion in Asia’s largest-ever public market debut by a Southeast Asian firm.”

That’s about half of what we’re discussing when it comes to Grab’s blank-check-led project; it’s not just a major deal for a large corporation, but it’s also the biggest deal for its sector and will see SPAC investors back it.