Industry

Grab Is Considering a $2 Billion IPO in the U.S.

News comes after merger talks with rival Gojek stalled.
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Grab is reportedly exploring an initial public offering (IPO) in the United States later this year. Reuters reports that the ride-hailing and food delivery giant is encouraged by robust investor appetite for IPOs. 

The IPO could be worth at least $2 billion (P96.1 billion).

Reuters’ sources say the IPO is not yet a done deal and will depend on market conditions. 

Grab’s ride-hailing service took a hit because of restrictions caused by the pandemic, although its food and package delivery businesses thrived. The Singapore-based company said its ride-hailing business is breaking even across all markets, including Indonesia, while the food delivery business is expected to break even by the end of 2021.

The news about the IPO comes after a merger deal between Grab and Indonesian giant Gojek reached an impasse. Sources have said that Grab CEO Anthony Tan is resisting pressure from one of its main backers, SoftBank, to give up control should the merger between the two companies push through.

Meanwhile, Gojek is in the advanced stages of a possible merger with Indonesian ecommerce company Tokopedia, according to Bloomberg. The two companies have been in talks for a merger since at least 2018, but Bloomberg’s sources have said that the discussions accelerated since the deal between Gojek and Grab stalled.

 

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Paul John Caña
Associate Editor, Esquire Philippines
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