☕️ Grab's Q3 losses increased by 59% to USD988 mil

RM75.3k per square foot for an apartment in HK, a record in Asia. AirAsia obtained shareholder approval for RM1bil lifeline. Falguni Nayar - India's richest self-made woman billionaire.

1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

82,201 properties have been sold since the beginning of the Home Ownership Campaign in 2019 until this August. The total transacted value is more than RM38.29 bil. Did you buy a property under HOC?

Have you been asked to go back into the office? Not surprising as 75% of higher-ups who were working remotely wanted to be in the office three days a week or more, according to surveys by Slack, a messaging firm. Only 34% of non-executives felt the same way.

HKD639.796 mil (RM 342.24 mil) — the price of Flat 16D and three car parking spaces at Mount Nicholson at The Peak in Hong Kong, a record in Asia. Price per square foot? HKD140,800 or approx RM75,316.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

  1. The plot thickens! Serba Dinamik Holdings Bhd missed its coupon payment (of USD9.45 mil, approx RM39.35 mil) due on its USD300 million Sukuk three days ago (Nov 9). However, non-payment does not constitute default as there is a 30-day grace period. So let’s wait for Dec 8.

    Serba Dinamik had to forfeit its RM2.42 mil deposit to purchase an eight-storey office building in Cyberjaya worth RM24.2 mil. It failed to complete the purchase per the terms of the sale and purchase agreements (SPAs) inked in February.

    Serba Dinamik has also failed to stop Bursa Malaysia Securities Bhd and Ernst & Young Consulting Sdn Bhd (E&Y) from releasing a report on findings against the company.

    The minority shareholders being thrown around. Is this the beginning of the end for Serba Dinamik?

  2. AirAsia Group Bhd gets a lifeline as its shareholders approved its proposed cash call to raise more than RM1 billion to recapitalise the low-cost carrier.

    The cash call offers shareholders the right to buy two redeemable convertible unsecured Islamic debt securities (RCUIDS), with one free detachable warrant, for every six AirAsia shares held. Each RCUIDS will be priced at a nominal value of 75 sen.

  3. Digital Nasional Berhad (DNB) disputes the report saying no major telco has subscribed to access Malaysia’s 5G network operated by the state-owned firm. DNB said it had not begun formal negotiations with telcos as DNB has not finalised the applicable reference access offer (RAO). DNB expects the RAO to be ready by end-November upon MCMC’s approval.

News in brief:

  1. Opposition leader Anwar Ibrahim suggests an open debate for all chief minister (CM) candidates from each faction in the upcoming Malacca state election. We already know the candidates for PH and BN. However, Perikatan Nasional (PN) still focuses on winning the most seats without naming its CM candidate.

  2. Malaysia might be missing out on the crude palm oil (CPO) price rally as the country does not have sufficient manpower for harvesting jobs in oil palm plantations.

    Can we humbly suggest raising the salary of plantation workers? Make the economics work.

  3. The Royal Malaysia Police (PDRM) has solved the murder case in front of a coffee shop in Bandar Bukit Tinggi 2, Klang, last Saturday. While there were a lot of speculations that went around WhatApp groups last weekend, the police believed the case was related to gang activities. PDRM will reveal the motive when the time is right.

  4. The Malaysian Association of Tour and Travel Agents (MATTA) wants a fairer compensation scheme compared with the 0.5% proposed debt settlement by AirAsia X Bhd (AAX). AAX’s fate should be known by the end of the day AAX’s creditors meeting is scheduled for today.


5. AROUND THE WORLD 🌎

  1. Falguni Nayar became India’s richest self-made woman after her beauty company, Nykaa, soared in its public debut in Mumbai on Wednesday. The 58-year old former investment banker owns about half the company and is now worth nearly USD7 bil according to Bloomberg Billionaires Index. 

    She was an investment banker for two decades at India’s Kotak Mahindra Bank. In 2012, she left her role and started Nykaa with USD2 mil from her and her husband, Sanjay Nayar, the chairman of PE firm KKR in India. 

    Fun fact: Nykaa means ‘heroine’ in Sanskrit.

  2. Ride-hailing giant Grab Holdings Inc announced its third quarterly result for the period ending Sep 30 2021. 

    Highlights:

    1. Net loss increased by 59% to USD988 mil, driven primarily by non-cash expenses (USD748 mil) such as interest on convertible redeemable preference shares, stock-based compensation and fair value changes on investments.

    2. EBITDA losses grew 66% to USD212 mil from USD128 mil. 

    3. GMV reached a new quarterly record of USD4.04 bil, up 32% from USD3.06 bil the previous year. 

    4. Deliveries GMV grew 63% YoY to reach uSD2.3 bil, offsetting a 30% YoY decline in mobility GMV due to lockdowns.

    5. Quarterly revenue fell 9% to USD157 mil from uSD172 mil.

    Grab is set to list via a SPAC merger in this quarter at a USD40 bil valuation. Its peer, China-based Didi, listed in the US, has a market cap of USD43 bil with revenue of USD22 bil in 2020. At a fraction of Didi’s revenue, Grab’s targeted valuation seems too lofty. 

Deals

  1.  TreeDots, a Singapore-based startup, has raised USD11 mil Series A led by Amasia and East Ventures, bringing its funding to a total of USD15 mil. The startup was founded in 2017 to address food waste, specifically those that are thrown away due to cosmetics issues, but otherwise is safe for consumption by operating a surplus food marketplace for F&B businesses. No metrics were shared apart from saying that its GMV has grown more than 4x yoy. 

    They have recently expanded to Malaysia. If you are operating in the F&B industry, worthwhile to check them out. You might get cheaper ingredients!

  2. Indonesia’s GoTo Group, the result of a merger between Gojek and Tokopedia, announced that it has secured more than USD1.3 bil in the first close of its pre-IPO funding.

    The latest round was led by Abu Dhabi Investment Authority, with participation from Avanda Investment Management, Fidelity International, Google, Malaysia’s Permodalan Nasional Berhad (PNB), Primavera Capital, SeaTown Master Fund, Temasek, Tencent and Ward Ferry. The company declined to comment on its valuation. According to media reports, the valuation is estimated between USD28.5 - 30 bil

News in Brief:

  1. Elon Musk sold about USD5 bil in Tesla shares this week as he exercised stock options that he received as part of his compensation package, largely to cover tax withholding obligations. 

  2. Bentley, the ultra-high-end British carmaker, is enjoying some of its best years. It reached a record sales of 11,206 units in 2020, despite the pressures of the coronavirus pandemic. The momentum was carried into this year - the first half of 2021 also already yielded more profits than the company earned in any year before. 

  3. Indonesia’s religious authority, National Ulema Council, has ruled that crypto-assets as currencies are not shariah-compliant. The nation’s top Muslim clerical body, rules that cryptocurrencies are haram, or banned, due to their element of uncertainty, wagering and harm.


6. FOR YOUR VIEWING PLEASURE 👁👁

  1. Universiti Teknologi Sarawak, Sibu looking good! Scroll the Twitter thread to see more images of its facilities.

  2. Why is yawning contagious