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Southeast Asia's Grab considering US IPO this year: Sources
The IPO could raise at least US$2 billion, one of the sources said, which would likely make it the largest overseas share offering by a Southeast Asian company.
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Grab drivers leaves COVID-19 test site after their blood sample being taken for rapid test. (Photo courtesy of Grab Indonesia/-)
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outheast Asian ride-hailing and food delivery giant Grab is exploring a listing in the United States this year, encouraged by robust investor appetite for IPOs, three sources familiar with the matter told Reuters.
The IPO could raise at least US$2 billion, one of the sources said, which would likely make it the largest overseas share offering by a Southeast Asian company.
Read also: Gojek, Grab merger could spell start of antitrust investigation
“The market is good and the business is doing better than before. This should work well for public markets,” he said.
The plans, including the size of the issue and timing, have not been finalized and are subject to market conditions, said the sources, who declined to be identified as they were not authorized to speak about the matter.
Singapore-based Grab declined comment on the potential IPO.
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 startup worth more than $16 billion.
Read also: More start-up partnerships 'expected' following Gojek, Tokopedia merger talks
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. It has also said its ride-hailing business is breaking even in all its operating markets, including Indonesia, the 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 $18 billion merger ahead of a potential dual listing in Jakarta and the United States, Reuters reported this month.
