Altimeter Growth (NASDAQ:AGC) stock is up on Wednesday following reports that the special purpose acquisition company (SPAC) is planning to merge with Singapore’s ride-sharing service Grab.
Here’s what potential investors in AGC stock need to know about the talked-about SPAC merger.
- According to the Financial Times, the SPAC merger values the combined company at $35 billion.
- Reports claim that the merger will have Garb raising a total of $2.5 billion from a private investment in public equity (PIPE).
- Altimeter Growth will be assisting with that by contributing $1.5 billion to the PIPE.
- Altimeter Growth has two SPAC units for merging with private companies to take them public.
- Sources today claim that Grab will merge with Altimeter Growth 1.
- This company raised $250 million last year.
- Grab has raised $12 billion to date and has a cash reserve of about $5 billion.
- It also has a private valuation of $16 billion.
- Adding to that, the company is also backed by Vision Fund, which is under the control of SoftBank (OTCMKTS:SFTBY).
- Finally, the rumors claim that Grab founder Anthony Tan will own about 2% of the company after it goes public.
- Some of the details of the SPAC deal are still unclear.
- That includes what stock ticker Grab will use instead of AGC.
- It’s also unknown when the SPAC merger between the two companies will close.
- However, sources claim the deal could be announced as early as this week.
- This isn’t the first time that talk of a SPAC merger between Altimeter Growth and Grab has shown up.
- Bloomberg reported on similar SPAC merger rumors back in mid-March.
- Today’s news has AGC stock experiencing heavy trading.
- As of this writing, more than 1.9 million shares have changed hands.
- For perspective, the stock’s daily average trading volume is only about 422,000 shares.
AGC stock was up 5.3% as of Wednesday morning.
Grab is far from the only company considering a SPAC as its vehicle for going public.
SPACs have been rising in popularity of late with more companies choosing them as their means to enter the public market. That includes Innoviz (NASDAQ:INVZ) completing a merger with Collective Growth, Topps planning to go public throughMudrick (NASDAQ:MUDS), and more. Investors can learn more about the latest SPAC news below.
More SPAC News
- Innoviz SPAC Merger: 10 Things to Know About Lidar Play INVZ Stock as Shares Begin Trading
- MUDS Stock: Mudrick Shares Trade Higher on Topps SPAC Merger, NFT Optimism
- 8 Major Players in the SPAC Game to Watch
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.