Singapore-based ride-hailing and food delivery company Grab Holdings Inc. is said to be planning to list its shares in the U.S. this year, sources familiar with the matter have told Reuters.
The company is being encouraged to list as a result of healthy investor appetite for technology IPOs in the West, the sources said.
Based on its current market valuation, and the supposed amount it plans to list, Grab's initial public offering could raise as much as $2 billion, the sources claimed. The initial public offering could be one of the largest overseas share sales by a Southeast Asian company.
"The market is good and the business is doing better than before. This should work well for public markets," the sources said.
The size and timing of the listing haven't been finalized and the decision is still subject to market conditions, the sources said.
Grab declined to comment.
Some analysts said Grab's initial public offering could be much larger than $2 billion given the interest and demand. The company's long-term investors and new ones are expected to come on board once Grab floats its shares.
Since its establishment in Malaysia in 2012 as a ride-hailing startup, Grab has expanded fast and has become one of Asia's largest technology unicorns. The company is now worth more than $16 billion.
Grab's largest backers include Japan's SoftBank Group Corp. and Mitsubishi UFJ Financial Group Inc.. Through funding rounds the company has raised more than $10 billion.
Indonesia rival Gojek is in advanced discussions about merging with local e-commerce pioneer Tokopedia ahead of a planned initial public offering of the combined entity, Bloomberg News has reported.
The pair has considered a potential merger since 2018 but discussions accelerated after deal talks between Gojek and Grab reached an impasse, people familiar with the matter have said.
Grab chief executive officer Anthony Tan continues to resist pressure from SoftBank Group's Masayoshi Son to give up some control in a combined entity with Gojek, people close to the events said.
Apart from its core ride-hailing business, Grab has expanded into food delivery services, insurance and digital payments. Grab recently acquired a digital banking license in Singapore.
The company's business thrived during the pandemic last year as demand for food delivery boomed. For 2020, the company reported a 70% year-on-year net revenue increase. Its overall performance as of its latest quarter is above pre-pandemic levels.
A report from Moody's said Grab's cash holdings were estimated to be around $3.2 billion. The amount is expected to be enough to cover any negative operating cash flows, capital spending and scheduled debt maturities over the next two to three years, the report said.
