Southeast Asia’s most valuable startup Grab has postponed its S$54 billion (US$40 billion) initial public offering (IPO) via a special purpose acquisition company (SPAC) merger till the fourth quarter of this year.
The company had previously said it aimed to close the deal by July this year, but there are delays over details required by the US Securities and Exchange Commission (SEC). Grab is finishing its financial audit for 2018 till 2020, and is working with the SEC for pre-clearance for accounting policies and financial disclosures.
Grab’s valuation is the largest so far in the SPAC space, and the ride-hailing giant could raise about S$6 billion (US$4.5 billion) in cash proceeds.
Grab Holdings chief executive Anthony Tan had said he is confident the merger with the US blank cheque company will be completed by year-end.
Image Credit: ReutersSome observers and investors have shown concern on the delay, as the SPAC craze may cool off in a matter of months.
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