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Grab Going Public in Record $40 Billion SPAC Merger

Under the deal with Altimeter, ride-hailing company Grab Holdings is valued at $39.6 billion.

Grab Holdings, the ride-hailing company that operates across of Southeast Asia, said Tuesday it would merge with Altimeter Growth  (AGC) - Get Altimeter Growth Corp. Report, a special-purpose acquisition company sponsored by Altimeter Capital AGC of Menlo Park, Calif.

Under the deal, Grab Holdings, which also offers food delivery and mobile digital payments services, was valued at $39.6 billion, making it the largest ever blank-check deal.

The group will begin trading on the Nasdaq once the deal is completed under stock symbol "GRAB."

Grab will receive about $4.5 billion in cash under the terms of the deal, which includes $4 billion private investment in public equity. Investors in the PIPE include funds and accounts managed or advised by BlackRock, Fidelity, Nuveen, T. Rowe Price and sovereign wealth funds including Temasek.

Backers of Grab include SoftBank and China’s Didi Chuxing.

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Grab’s transaction will top the $24 billion deal electric vehicle maker Lucid Motors struck with a SPAC in February. 

SPACs, shell companies that raise funds through an initial public offering to take a private company public, have grown in popularity due to their streamlined approach that bypasses typical regulatory processes as well as expensive road shows put on by investment banks. 

Shell firms have raised $99 billion in the United States so far this year after a record $83 billion fundraising in 2020, according to a report from Reuters.

While March was a rough month for SPACs, Jim Cramer said we're at the point of saturation, where the bad special purpose acquisition companies are driving out the good ones.

Check out TheStreet's SPAC Tracker for more.