Altimeter Growth Inc. (AGC) stock surged by 1.45% at the last trading close while the AGC stock price continued to rise by 9.61% in the pre-market trading session. 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.
What is happening?
In what is the biggest transaction of its kind, Grab Holdings Inc., Southeast Asia’s most successful startup, is going public in the United States through a partnership with blank-check company Altimeter Growth Corp.
After combining with Brad Gerstner’s Altimeter Capital Management’s special purpose acquisition business, the Singapore-based startup is expected to have a market valuation of about $39.6 billion, the firms said in a statement Tuesday. Grab is raising more than $4 billion in the largest U.S. equity offering by a Southeast Asian firm, with investors including BlackRock Inc., Fidelity International, and T. Rowe Price Group Inc.
The deal will make the Southeast Asian ride-hailing and food-delivery behemoth the first Southeast Asian tech unicorn to go public via a SPAC, allowing it to grow. Grab is attempting to capitalize on a U.S.-led SPAC listing boom, despite indications that it is slowing due to increased regulatory scrutiny. In the coming months, the merged entity’s stock will trade on the NASDAQ under the ticker GRAB. Altimeter Capital, which arranged Altimeter Growth’s initial public offering in September, is investing $750 million in the firm, accounting for about a fifth of the new funds raised.
Grab has taken a significant step forward as a result of this contract. For the majority of 2020, the company had been pursuing a potential merger with Indonesia’s Gojek under pressure from SoftBank Group Corp. and other investors. However, the talks fell through in December, and Gojek started discussions with Tokopedia, another local internet behemoth.