Grab Holdings Inc.

IPO Offering Details: Grab Holdings Inc. (Proposed NASDAQ Code: GRAB) is the leading superapp platform in Southeast Asia, which is engaged in offering day-to-day services to consumers, including mobility, package, food, and grocery supply services, as well as mobile payments services.

• GRAB had informed the market regarding its plans to go public in the U.S. in alliance with Altimeter Growth Corp. (NASDAQ: AGC) and intends to raise a PIPE size of over US$4.0 billion led by ~US$750 million from funds administered by Altimeter Capital Management, LP.
• The proposed offering depicts an expected pro-forma equity value of ~US$39.55 billion and is likely to deliver up to around US$4.5 billion in cash proceeds to Grab.
• The combined company is expected to be traded on NASDAQ under the ticker symbol “GRAB”.
  

Current Investors: BlackRock, Counterpoint Global and T.Rowe Price Associates, Inc., Fidelity International, Janus Henderson Investors, Temasek, among others are the present investors in the PIPE. As part of the commitment by Altimeter it is offering 10% of its sponsor promote shares, subject to a 3-year lock-up period, to boost the GrabForGood fund.

Key Dates & Use of Funds: The company announced the news on 13 April 2021 and expects to start trading on NASDAQ in July 2021. The company will use the estimated IPO proceeds for its growth capital.

Past Performance-Highlights:

• Increase in Revenues: The company reported adjusted revenue of $1.59 billion in FY20 versus $1.03 billion in FY19 primarily due to scale, growing presence, and diversity across segments.
• Positive contribution Profits: GRAB posted a positive contribution profit of $1 billion in FY20 versus a loss of $1.2 Billion in FY19.
• Increasing Trend in GMV: In FY20, the company reported a GMV of $12.5 billion, up from $12.2 billion reported in FY19.

FY20 Revenues Highlights; Analysis by Kalkine Group

Key Risks: The company is exposed to changes in Government policy and stringent regulatory measures. Further, stiff competition, pricing pressures, and cyber-security risk remain potential headwinds.

Summary/Outlook: GRAB has projected an adjusted revenue of $2.3 billion, $3.3 billion, and $4.5 billion in FY21, FY22, and FY23, respectively. GMV for FY21 is projected to be ~$16.7 billion. Notably, the Southeast Asian market is one of the quickest rising digital economies across the globe, with robust demand for online food delivery, ride-hailing, and digital wallet payments. The company predicts to increase its total addressable market to over US$180 billion by 2025 from US$52 billion reported in 2020. To conclude, with this listing, the company could become one of the largest U.S. equity superapp Southeast Asian companies.

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