Singapore-based ride-hailing as well as food delivery firm, Grab is reportedly considering a listing in the U.S. in 2021, emboldened by strong appetite among investors for initial public offerings (IPOs), cite sources privy to the matter.

As per one of the reliable sources, the IPO could raise nearly US$2 billion (S$2.66 billion), which would possibly make it one of the largest-ever overseas stock offering by a South-east Asian firm. The sources added that the market is good, and the business is doing much better than before. This might work well for public markets.

Continuing further, the plans, including the size of the issue as well as timing, are yet to be determined and would be subject to the market conditions. However, the ride-hailing and food delivery giant has not yet made an official comment on the company’s potential IPO.

The South-east Asian company, whose prominent backers include Mitsubishi UFJ Financial Group, and SoftBank Group Corp, has diversified rapidly from its initial portfolio, as a ride-hailing enterprise in 2012 in Malaysia, to become the most valuable start-up firm in Southeast Asia with a valuation of over US$16 billion.

Grab, also offers financial services having obtained a digital bank license in Singapore recently. The firm has stated that the group net revenue this month has comfortably recovered to be above the pre-pandemic levels. 

Grab also stated that its business of ride-hailing is breaking even in all of its operating markets, including in Indonesia, its biggest market. The firm expects its business of food delivery to break even by the end of 2021.

The IPO plans would be coming to the front after discussions of merger with Gojek, its Indonesian rival, were derailed.

Gojek and Tokopedia, a renowned Indonesian e-commerce leader, are in advanced talks for a merger worth US$18 billion in advance of a potential dual listing in the U.S and Jakarta.

Source credit: https://www.straitstimes.com/business/companies-markets/grab-considering-us-ipo-this-year-sources