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Grab Holdings Looking to Go Public Through SPAC Merger

Grab Holdings is reportedly discussing a deal with a special-purpose acquisition company affiliated with Altimeter Capital Management LP.

Grab Holdings is reportedly in talks to go public through a merger with a "blank check" company that could value the Southeast Asian ride-hailing startup at as much as $40 billion.

The Singapore company is discussing a deal with a special-purpose acquisition company affiliated with Altimeter Capital Management LP that would value it at between $35 billion and $40 billion, the Wall Street Journal reported, citing people familiar with the matter.

Grab Holdings did not immediately respond to a request for comment.

As part of the deal, Grab would raise between $3 billion and $4 billion in a so-called PIPE, a funding round that typically accompanies a SPAC merger, the people said. That amount could still change as Grab and Altimeter will start meeting with mutual funds and other potential investors soon.

The parties could announce the deal in the next few weeks, though the talks could still fall apart and Grab could revert to an earlier plan to stage a traditional IPO on a U.S. exchange this year.

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Headquartered in Queenstown, Singapore, Grab Holdings was founded in 2012 and has about 6,000 employees. 

The company delivers grocery and other items and provides digital financial services to merchants.

Grab Holdings' backers include SoftBank Group  (SFTBY) , Uber Technologies  (UBER) - Get Uber Technologies, Inc. Report and Toyota Motor  (TM) - Get Toyota Motor Corp. Report. It was last publicly valued at around $15 billion in a fundraising round in October 2019, according to PitchBook.

Altimeter’s SPACs— Altimeter Corp. and Altimeter Growth Corp.—raised $450 million and $400 million in October and January IPOs, respectively. Altimeter Capital, of Menlo Park, Calif., has around $16 billion under management and primarily invests in technology companies.

So far this year, there have been 246 SPAC IPOs, making up 84% of the total number of IPOs, according to SPAC Analytics.

TheStreet's Jim Cramer recently commented on why he is not a fan of SPACs.