Will Grab’s investors sell as shareholder lock-ups expire?

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Hello reader,

I’m a big fan of selling my preloved clothes and accessories on classifieds marketplace Carousell. However, when I was cleaning out my closet recently, I found myself asking, ”What should I keep and what should I sell?”

There were some pieces that obviously belonged in one category or the other, but some hovered in between. Sure, I haven’t worn this particular dress in a year, but I love the pattern, and I keep hoping that an exciting occasion will come up where I can wear it.

It’s a similar story with investors in the wake of an IPO. They may be wondering if they should sell their stake in a company and reap the rewards or if they ought to hold on for longer in the hopes of even bigger gains. And as super app Grab’s principal shareholders come to the end of their lock-up agreements, it’s a decision they’ll have to make as well.

Today we look at:

• Whether Grab’s major shareholders are going to sell or hold
• What fresh funding will do for this quick commerce startup
• Other newsy highlights such as Pinduoduo’s first quarter results and the UAE’s first SPAC

Premium summary

Shares for sale?

Image credit: Timmy Loen

Grab made its stock market debut in December 2021. Now, its key shareholders must decide if they want to sell the stakes they have in the super app as the lock-up agreement that prevented them from doing so expires.

• The folks in question: Grab’s principal shareholders are SVF Investments (SoftBank Vision Fund), Uber, Didi, and Toyota, which collectively hold around 1.7 billion shares – or around 45% of issued and outstanding shares.

• Dipping down: If these shareholders decide to sell, the increased market supply could further decrease Grab’s share price, which has already seen a significant decline in recent months. However, this dip in Grab’s share price could discourage investors from selling.

• To hold or not: Broadly speaking, it seems highly unlikely that these firms would sell, given Grab’s depressed share price. However, the prospect of them doing so at some point continues to hang over the super app and its future on the road ahead.

Read more: As Grab shareholder lock-ups expire, is fresh round of selling imminent?

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