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EXCLUSIVE-Grab mulling secondary Singapore listing after SPAC merger -sources

Fri 16th April, 2021 11:02am
(Adds quotes, paragraphs 4,5,15)
    By Anshuman Daga
    SINGAPORE, April 16 (Reuters) - Grab Holdings, Southeast
Asia's ride-hailing to delivery giant, is considering a
secondary listing in its home market of Singapore after
completing a Nasdaq listing via a $40 billion SPAC merger, three
sources familiar with the matter said.
    Listing on Singapore Exchange  SGXL.SI  would enable Grab to
have an investor base close to where its regional business is
based, the people said, potentially offering its customers,
drivers and merchant partners easier access to trade its shares.
    Grab, a household name across Southeast Asia, is in the
early stages of considering a secondary listing in the
city-state, said the sources, who declined to be identified as
they were not authorised to speak about the matter.
    Grab and SGX declined to comment on the listing plans.
    "For the right issuer, a secondary listing could well be a
good move. You can get the best of both worlds," said Raymond
Tong, capital markets and M&A partner at law firm Rajah & Tann
Singapore.
    "If your home markets are in this region, a Singapore
listing can help you tap another pool of investors as there are
many family offices and funds based in Singapore," said Tong.
    The potential Singapore listing plans come after Grab this
week struck a $40 billion merger with Altimeter Growth Corp.
 AGC.O , a special purpose acquisition company (SPAC), setting a
record for the world's biggest SPAC deal.  urn:newsml:reuters.com:*:nL1N2M609X
    As part of the transaction, Grab is raising $4 billion from
investors including BlackRock  BLK.N , Temasek Holdings,
Fidelity International, Malaysia's Permodalan Nasional Bhd and
some of Indonesia's richest family groups.
    Grab, which began as a ride-hailing business in 2012, now
operates in eight countries and more than 400 cities and has
expanded into food and grocery deliveries, as well as digital
payments. Last year, it won a digital banking licence in
Singapore.  urn:newsml:reuters.com:*:nL1N2IK0T1
    It wasn't clear how much Grab might aim to raise in any
secondary listing, with financial terms and timetable still in
the early stages of consideration, the sources said.
    The company with the top valuation on the Singapore bourse
is bank DBS Group Ltd  DBSM.SI , currently worth about S$74
billion ($55.4 billion) by capitalisation.
    One of the sources said that while Grab has sufficient cash
reserves and could end up raising only a small amount on SGX, a
listing would mark a big win for the exchange.
    SGX has mainly only seen large IPOs from real estate
investment trusts. Hindered by a small base of retail investors
in the city-state, it has struggled with low liquidity and
valuations, forcing a spate of delistings and also discouraging
big-ticket listings from regional high-growth companies.
    The Hong Kong bourse, however, has benefited from diplomatic
and political tensions between the United States and China that
have led many Chinese firms to seek secondary listings in Hong
Kong. Global fund managers have also been swapping China
holdings from Wall Street to Hong Kong.  urn:newsml:reuters.com:*:nL1N2IR0GN
    SGX has taken many steps to try to bulk up its stock market
in recent years, and under Chief Executive Loh Boon Chye, who
was appointed six years ago, it has acquired firms to transform
itself into a multi-asset exchange.
    Over the past three years, SGX-listed companies have raised
about four times more funds in the secondary market than from
primary fund raising.
    Currently, there are 28 companies with a secondary listing
on SGX, including Malaysia's IHH Healthcare Bhd  IHHH.KL  and
Top Glove Corp Bhd  TPGC.KL  and Hong Kong conglomerate Jardine
Matheson Holdings  JARD.SI .
    Last year, AMTD International  HKIB.K  became the first
NYSE-listed firm to list on SGX. It also became the first to
take advantage of a dual-class share structure in Singapore.
($1 = 1.3351 Singapore dollars)

 (Reporting by Anshuman Daga; editing by Kenneth Maxwell and
Jason Neely)
 ((anshuman.daga@tr.com;))
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