Last updated: 02 Dec, 2021 | 12:56 pm
Grab IPO: Grab is all set to list on NASDAQ on 2 December 2021 after its $40 billion merger with special-purpose acquisition company (SPAC) Altimeter Growth Corp. This is going to be the biggest US listing by a Southeast Asian firm. The combined entity will start trading on the Nasdaq on Dec 2 under the ticker GRAB.
Grab stock: Competition
Grab's SPAC merger with Altimeter Growth gives the combined entity a mcap of $40 billion. In 2021, Grab expects to post revenues of about $2.3 billion, implying a price-to-sales ratio of 17. For perspective, Zomato’s IPO had been priced at 28 times FY21 revenues. Profitability could remain a key overhang over the near-term. While the company has not posted any profit as yet, it has shown very strong growth. As it grows larger and revenue gains outpace rising costs, it should become profitable. Investors with a high risk appetite who wish to take exposure to a fast growing digital super app could consider investing in this issue.