Self-styled “super app” Grab has made its Nasdaq listing debut with a pop and drop.
The stock opened at US$13.06, 18.6% higher than Altimeter Growth Corp’s (AGC) last traded price of US$11.01.
However, it dropped to US$11.67 in two minutes. After around 45 minutes, it went below Altimeter's last traded price of US$11.01 and ended the session at US$8.75, down more than 20%.
"The price makes no difference to me. I'm going to celebrate tonight and get back to work tomorrow," Grab's co-founder and CEO Anthony Tan told Reuters, just after the shares started trading.
Grab’s listing was via a US$4.5 billion special purpose acquisition company merger with Altimeter – the largest such deal involving a company from Southeast Asia.
The listing ceremony is held in Singapore so that the company can better recognise its community of drivers and merchant partners. It is Nasdaq’s first-ever opening bell ceremony to be hosted in the region.
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"Today, we shine a spotlight on Southeast Asia, and how its homegrown tech companies are powering new possibilities for the region's 660 million people," says Tan.
"None of this would have been possible without the dedication and grit of Grabbers and the support of consumers, investors, businesses and government partners,” he adds.
The bell ceremony saw representatives of the Grab driver-partners, delivery-partners and merchant-partners. Roszana Binte Ali, a GrabFood delivery-partner, says she is happy to be part of the celebration, recounting that she was close to giving up finding a job before delivering for Grab.
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“Grab was the first company that gave me the ability to earn an income and support my family, even with my disability. I am proud to be financially independent. I hope that Grab will keep bringing these earning opportunities to many more people in Southeast Asia,” she adds.
Previously known as MyTeksi, Grab was founded in 2012 as a taxi booking app in Malaysia. Today, Grab operates across the deliveries, mobility and digital financial services sectors in 465 cities in eight countries in the Southeast Asia region.
On Nov 11, Grab reported that its net loss widened 57% y-o-y to US$988 million for the most recent 3QFY2021 ended September.
The losses, according to the company, was largely from US$748 million in interest accrued on Grab’s convertible redeemable preference shares, stock- based compensation and fair value changes on investments.
Revenue for the same period was US$157 million, down 9% y-o-y. The company attributes the drop to "severe lockdowns" in Vietnam which affected the volume of activities there.
Photo: Grab's co-founders Tan Hooi Ling (left) and Anthony Tan at the "bell ringing" ceremony.
