Grab Picks Morgan Stanley, JPMorgan for U.S. IPO

A delivery driver for GrabFood, Grab Holdings Inc.'s online food-delivery platform, rides a motorbike to deliver an order in Singapore, on Friday, Sept. 25, 2020. Alibaba Group Holding Ltd. is in talks to invest $3 billion in Southeast Asian ride-hailing giant Grab, according to people familiar with the matter. Photographer: Ore Huiying/Bloomberg
A delivery driver for GrabFood, Grab Holdings Inc.’s online food-delivery platform, rides a motorbike to deliver an order in Singapore, on Friday, Sept. 25, 2020. Alibaba Group Holding Ltd. is in talks to invest $3 billion in Southeast Asian ride-hailing giant Grab, according to people familiar with the matter. Photographer: Ore Huiying/Bloomberg (Ore Huiying/)

(Bloomberg) — Southeast Asian ride-hailing giant Grab Holdings Inc. has picked banks for a potential U.S. initial public offering, that could raise at least $2 billion, according to people familiar with the matter.

Morgan Stanley and JPMorgan Chase & Co. have been selected to work on a listing that could happen as soon as the second half of this year, the people said. More banks could be added and details of the offering could change as deliberations continue, said the people, who asked not to be identified as the information is private.

Grab’s IPO considerations come after talks to combine with Indonesian rival Gojek stalled. The latter startup is now in advanced discussions to merge with local e-commerce pioneer PT Tokopedia instead, creating a powerful regional player in online services that may then seek to go public, Bloomberg News reported this month. A Gojek-Tokopedia tie-up could create a Southeast Asian powerhouse with a valuation of about $18 billion and businesses encompassing ride-hailing and payments to online shopping and grocery delivery.

Read more: Gojek Is Said in Talks With Tokopedia for $18 Billion Merger

That could threaten Grab’s own effort to expand across the region, particularly in the largest market of Indonesia. The Singapore-based company backed by SoftBank Group Corp.. grew net revenue 70% in 2020 after bouncing back from a Covid-19 trough. The startup, which was last valued at more than $14 billion, is now angling to delve deeper into online finance and food delivery.

Representatives for Grab, Morgan Stanley and JPMorgan declined to comment.

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