Grab Explores Public Offering

Issue 54

01.18.21 - Grab, the Singapore based ride-hailing giant, is considering going public in US capital markets this year. According to ABI Research, Asia Pacific accounts for 70% of all ride hailing trips in the world, of which Grab holds an 11.4% market share.

Unlike most ride hailing giants, Grab expects to be profitable by the end of the year and post a positive EBITDA, compared to Uber’s negative EBITDA. Uber also owns a 23% stake in Grab after selling the company it’s Asia Pacific operations, a deal that came with strings attached - the company must go public by 2023 or face a $2 billion payout to Uber.

It’s not really a question of if Grab will go public; it’s just a question of when. Grab also faces pressure from its largest competitor, Gojek, which is considering a potential merger with e-commerce company Tokopedia and dual listing in the United States and Jakara. Grab’s IPO could likely well exceed $2 billion.

Source: Reuters