Grab CEO says ‘no immediate need’ for IPO

Grab CEO says ‘no immediate need’ for IPO

The ride-hailing company is “properly run”, so it can launch an IPO if it ever decides to, says CEO Anthony Tan.

Grab's CEO Anthony Tan speaks during Grab's fifth anniversary news conference in Singapore
Grabs CEO Anthony Tan. (File photo: REUTERS/Edgar Su)

SINGAPORE: There is “no immediate need” for ride-hailing company Grab to undergo an initial public offering (IPO), but it is ready if it decides to, said CEO Anthony Tan on Tuesday (Jul 10).

The US$1 billion investment by Japanese carmaker Toyota in June has “created tremendous momentum” for Grab's growth, said Mr Tan.

“This is not small money ... it is the biggest investment from an original equipment manufacturer on a ride-hailing company,” he told reporters during a media interview session after the company announced that it is entering the competitive online grocery delivery space through GrabFresh.

And Grab intends to continue building on its growth, the CEO said, pointing to the same-day announcement of GrabPlatform as an example. 

The latter is the open platform vision it has to get other companies in the region to build services on top of the tech infrastructure the ride-hailing company has developed over the years such as mapping, logistics and payments.

The company has also raced through various service and product launches following its yet-ratified acquisition of rival Uber’s Southeast Asia operations, such as its financial technology-focused Grab Financial initiative, GrabFood and in-car convenience store service Grab&Go. 

That said, Mr Tan pointed out that the company is “properly run” from a governance perspective and, with this, will be able to go through the IPO process if needed.

His comments come on the heels of several notable public offerings by Chinese companies.

Mobile phone maker Xiaomi, for one, raised US$4.7 billion when it listed in Hong Kong last month, while Foxconn Industrial Internet garnered more than US$4 billion and became China’s biggest listing since 2015. 

Source: CNA/gs