This article was written just before Grab released its 4QFY2023 results on Feb 22. We believe Grab will likely exceed expectations and recover from its lacklustre IPO in December 2021. Chart 1 shows the total cumulative returns to investors since IPO, which is currently around –60%. We believe that the turnaround in cash flows achieved in 3QFY2023 will likely be sustained, along with the positive adjusted ebitda. Grab’s strategy of being a super-app can only be effective if it has a footprint across the entire value chain of the space in which it operates. One of the main advantages Grab has is its substantial market share in the key operating segments of deliveries and mobility that it can leverage for synergies across other business segments.
Are the wheels of its fortunes reversing?
Nasdaq-listed Grab Holdings is a holding company which develops delivery management, mobility, financial services, and enterprise software solutions through its subsidiaries. Grab currently trades at US$3.49 ($4.69) per share, giving it a market cap of US$14 billion.
