Grab insiders buy in as Uber overhang weighs on stock

Grab co-founder and CEO Anthony Tan / Photo credit: Wikipedia

Grab CEO Anthony Tan’s recent purchase of shares of his company comes in the face of a more than 50% slide in the value of the firm’s shares this year, hitting a three-year low of US$2.74.

According to filings released on September 21, Tan purchased 10.4 million shares at US$2.8866 for about US$29.9 million. This is his first purchase since Grab went public and a contrast to his usual practice of selling down his stake.

For example, his last transaction related to the company was in August, when he sold 400,000 shares for US$1.5 million.

Separately, Grab COO Alex Hungate also bought 299,571 shares at US$2.8936 for about US$867,000 on September 21.

The Business Times understands that Tan told the firm about his purchase in an all-hands meeting on September 22. His rationale was “so that nobody in this company ever has to wonder where I stand.”

The move could be seen as a sign of shoring up confidence in Grab shares. The stock has remained weak despite positive financials and acquisitions that are earnings-accretive.

For instance, Grab’s planned acquisition of buy now, pay later platform Atome Financial this month was largely seen as a positive move by analysts. Grab’s management had also raised its guidance for 2028, with the deal driving the projected growth.

Photo credit: The Business Times

The revised guidance showed that the gross loan portfolio is projected to grow from zero to over US$6 billion by 2028, and the 2025-2028 revenue compounded annual growth rate is set to rise from 20% to 30%.

The financial services segment adjusted EBITDA is projected to hit US$500 million, and 2028-adjusted EBITDA was revised up from US$1.5 billion to US$1.7 billion.

The Atome agreement makes strategic sense, as Grab preempts its regional fintech peers in trying to capture more of the consumer credit market, said Alicia Yap, equity research analyst at Citi.

Despite the acquisition increasing Grab’s share of the Southeast Asian consumer credit market, its share price fell 1.4% from US$2.91 on September 15 to US$2.87 on September 16 after the deal announcement.

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