Grab IPO plunges 21% in biggest US debut by a Southeast Asian company

Under the deal, Grab merged with Altimeter Growth Corp (AGC), a SPAC launched by Altimeter Capital, a US funding agency. Shares in the company, now buying and selling beneath the ticker image "GRAB," opened up Thursday practically 20% above Altimeter's closing value the day earlier than.

SPACs are shell firms with restricted or no working property. They often go public solely to lift cash from traders that's then used to purchase current companies.Regulators, although, have stepped up scrutiny of the method. The Securities and Exchange Commission, for instance, has tightened its accounting steering for SPACs, whereas lawmakers in Congress held a listening to on the matter. That consideration has brought on SPAC exercise to plummet, and more regulation may very well be on the way in which: Bills to tighten guidelines round SPACs are at present making their manner by means of Congress. One proposal would compel clean examine companies to speak in confidence to retail traders the dangers of backing shell firms, whereas one other invoice might increase their legal responsibility for making false or deceptive forward-looking statements.

A 'tremendous app'

Through its deal, Grab raised funds from traders together with Fidelity, BlackRock, T. Rowe Price, Abu Dhabi sovereign wealth fund Mubadala and Singapore authorities funding arm Temasek. Co-founders Anthony Tan and Hooi Ling Tan rang the trade's opening bell in Singapore on Thursday evening in a ceremony together with Grab drivers and retailers.In current years, the agency has forged itself as a "super app," letting customers do the whole lot from reserving rides to taking out insurance coverage and loans. More than 25 million individuals use the app every month to make a transaction, throughout 465 cities in eight international locations. In an interview Thursday, chief monetary officer Peter Oey mentioned that the company would use the proceeds from the itemizing to double down on its current playbook. "We're just getting started in Southeast Asia," he instructed CNN Business.Oey argues that there's nonetheless "huge opportunity" to develop the agency's core companies at house. Grocery supply providers in the area are nonetheless in their infancy, he mentioned. Meanwhile, ride-hailing in the area is way much less established than in China, he added.Oey additionally didn't rule out the potential of doing more mergers and acquisitions, noting that "strategic opportunities will come up."

Grab has beforehand mentioned that it selected to go public in the United States, slightly than in Southeast Asia, as a result of it needed to faucet into a bigger investor base.But Oey mentioned Thursday that the company would not rule out the potential of itemizing on one other trade sooner or later. "We're open to Southeast Asia and other opportunities," he added.Still, the chief emphasised that the company would take it one step at a time."For us right now it's [about] making sure that we execute the business and stay focused, and support those shareholders who are in the ride with us," mentioned Oey.-- Jill Disis and Julia Horowitz contributed to this report.