Altimeter Growth Corp. (NASDAQ: AGC) stock surged by 2.47% at the last trading close and continued to rise by 11.18% in the pre-market trading session after it has been made official that Southeast Asia’s Grab is ready to be listed in New York through a merger with Altimeter SPAC. Altimeter is a Silicon Valley-based technology investment company with over $10 billion in assets under management through its venture capital and public investment funds. Altimeter has a track record of investing in outstanding entrepreneurs who are creating iconic technology businesses, assisting them in their move to public markets, and then making investments in these companies through its public funds after they go public.
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What is happening?
According to the Financial Times, Southeast Asia’s Grab is preparing to list in New York following a merger with a special purpose acquisition company (SPAC) funded by Altimeter Capital Management.
This listing is anticipated as the biggest SPAC merger till now in which Grab is expected to raise around $2.5 billion through private investment in public equity (PIPE) offer, which entails selling publicly traded common stock to private investors at a discounted price. Altimeter will contribute $1.2 billion to the project.
As per the press release, the SoftBank-backed technology business is valued at about $35 billion, and the transaction could close as soon as this week. Grab is expected to combine with Altimeter Growth Corp 1, one of Altimeter Capital’s SPAC vehicles that raised $450 million last year, as part of the agreement.
Altimeter Growth Corp 1 and Altimeter Growth Corp 2 are two SPACs funded by Silicon Valley-based venture capital company Altimeter, which manages more than $15 billion in public and private tech investments. According to the Financial Times, Grab has earned $12 billion and has around $5 billion in cash reserves, placing its private value at more than $16 billion.
This positive development in AGC shows its progress in the right direction therefore the investors have shown their confidence which has caused the AGC stock to rise, maybe because they are foreseeing some productive outcomes from their investment in AGC stock.