Why Grab Shares Tumble in Trading Debut After SPAC Deal

Hey Tigers!

Grab attract a lot of attention and interest in the market!

Grab, a Singapore-based “super app,” started out as a ride-hailing platform in 2012, but branched into everything from food delivery to digital payments and investments. The “super app” of Southeast Asia — also known as the Uber of Southeast Asia — was valued at a whopping $40 billion in pre-market.

However,$Grab Holdings(GRAB)$ opened 19% higher, then reversed course.

Brad Gerstner, Altimeter’s CEO, said Grab has become a“powerful flywheel combining ride-hailing, delivery and payments [that has] demonstrated durable growth even during the pandemic and is playing a foundational role in the digitization of Southeast Asia.”

Grab hasn’t turned a profit yet, but its SPAC deal also involved a $4.5 billion private investment in public equity. However, by midday today GRAB shares crumbled 20%, erasing a fifth of its value post-merger.

Anthony Tan, Grab Holdings’ Co-Founder and CEO, shared:“Regardless of the stock price, our focus is on the super app [business model] and that is resilient in spite of COVID.”

Why did GRAB's stock price plummet after its listing?

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