News in the blank-check company space has two SPACs moving on Friday morning. Altimeter Growth (NASDAQ:AGC) and Altimeter Growth 2 (NYSE:AGCB) are both climbing on news of a potential Grab SPAC merger. So what should you know about AGC stock and AGCB stock now?
To start, investors should know that Grab is a ride-hailing startup in Southeast Asia. Yesterday, the Wall Street Journal reported that the Singaporean company was in talks to come public via one of the Altimeter Growth SPACs. Does this mean AGC or AGCB?
Right now, the answer to that question is unclear.
However, that is not stopping investors from diving in. AGC stock gained 22% on Thursday, and is moving again in pre-market trading. Similarly, AGCB stock gained about 9% on Thursday. Both are from Altimeter Capital, which has $16 billion under management and invests in technology companies.
So what has investors so excited about the Grab SPAC merger news? Grab would be one of the largest special purpose acquisition deals yet on Wall Street. According to people familiar with the deal, a merger with the ride-hailing company would value it between $35 billion and $40 million. This would also come with between $3 billion and $4 billion in PIPE funding.
Additionally, Grab has tapped into the ride-hailing market in a big way. Rivaling the likes of Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), it has taken its services to 30 cities in Malaysia, Philippines, India, Thailand, Singapore, Vietnam and Indonesia. And beyond ride-hailing, it also offers food and grocery delivery.
One more thing to note? Grab has been rapidly expanding. Since its founding in 2012, it has grown to become the most valuable startup in Singapore. The company also hired Wall Street banks earlier this year.
AGC Stock or AGCB Stock? What to Know Now
So what else should you know about AGC stock, AGCB stock and the Grab SPAC merger rumors? The situation is tricky for investors right now, especially without clarity on which SPAC is in talks with Grab. There is no denying that the ride-hailing startup would make a high-profile acquisition. However, without clear information, it would be risky for investors to dive in.
One thing to consider is that AGC stock received the larger share of gains Thursday. Perhaps that is because it came public first, and investors may see it as more ready to close a deal. AGC hit the public markets in September 2020, while AGCB came public in January 2021. Additionally, AGC raised $450 million in its IPO, making it slightly larger.
Regardless of which SPAC is in talks to bring Grab public, it should be clear that the blank-check frenzy is not slowing down. Keep this story on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.