Shares of the Altimeter Growth Corp. (AGC) stock continued the rising trend in yesterday’s aftermarket session after rising as much as 5.11% at the previous closing. AGC stock price saw a push of 5.17% to reach $13.84 a share in the late hours of Monday, on April 19, 2021. Let’s try to find the reason behind this bull.
The momentum has been already built for the AGC stock since the spread of the news that it is going to merge with Grab, a ride-hailing and food-delivery giant of South Asia, via a definitive merger agreement. According to this deal Grab would be listed publicly in the NASDAQ via SPAC rather than traditional initial public offering and would have a market value of $39.6 billion upon the completion of the combination with AGC stock. Furthermore Grab will get approximately $4.5 billion in cash proceeds in connection to the merger agreement.
Grab is playing the lead role in South Asia for ride-hailing and food delivery services and growing at a fast pace. The Singapore-based startup has projected its expansion from $52 billion in 2020 to $180 billion by 2025. Despite the great rivalry with Gojek and severe COVID-19 pandemic condition that restricted the movements of individuals, Grab’s total gross merchandise volume in the last year was recorded $12.5 billion which was more than double as compared to 2018.
Altimeter CEO Remarks:
The CEO of the AGC stock acknowledged that Grab is one of the world’s largest and rapidly growing company clearing the digital pathway for 670 million citizens of Southeast Asia.CEO further said that the management of AGC is happy with this partnership and looking forward to the growth of its partner as well as its long-term owner.
AGC stock is outperforming as far as market sentiment is concerned. Its largest-ever SPAC deal with Grab would prove to be fruitful in the long run for investors. Hence AGC can be a good bet for investors in the long run.