☕️ It's official - Grab is to list via a SPAC valuing it at USD39.6 billion

Fave to be acquired for USD45 mil. Minister in PM Department took a private jet for a work visit. Japan is to dump 1 million tonnes of nuclear wastewater from Fukushima into the ocean.

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

Facebook spent USD23 million protecting their key man, Mark Zuckerberg in 2020 party thanks to increased security risks during the election.

12.39% of the government-controlled utility, Tenaga Nasional Berhad (TNB)’s shareholders are foreign institutions as at end March 2021.

$63,578.79 — Bitcoin’s fresh all the high, recorded during yesterday’s rally. We lost count how many times the cryptocurrency reached ATH in 2021.

RM138 millionhow much local cinemas made in 2020, compared to RM905 mil in 2019.



3. COVID-19 SUMMARY

4. IN MALAYSIA 🇲🇾

  1. Securities Commission (SC) has put Remitano on its investors alert list as the digital asset exchange (DAX) did not obtain licence as a Registered Market Operator in Malaysia which is an offence under Section 7 of the Capital Markets and Services Act 2007. SC is working with the Malaysian Communications and Multimedia Commission (MCMC) to block Remitano's website. SC further advise the users of Remitano to remove all digital assets from the platform before the block. SC’s effort, however, will be VPN-ed away.

  2. CapitaLand Malaysia has onboarded seven malls within its portfolio onto Grab’s Malls by GrabMart platform, the first operator in the country to do so. With the service, shoppers can mix and match their orders from different stores in the same mall and have the orders delivered with only needing to pay one delivery fee.

  3. Holiday Inn Resort in Batu Ferringhi, Penang has announced its closure back in June 2020 after being severely affected by the pandemic. Knight Frank has been appointed as the exclusive agent to assist with the sale of the hotel which is a 4-star freehold hotel with two separate buildings and includes an additional 7.69 acres of development land with views of the Andaman Sea.

  4. Home-grown e-commerce and fintech firm Fave has been acquired by Pine Labs in a cash and equity deal valued at over US$45 million (approx RM186 million), but with more than US$45 mil in capital raised from investors, and how venture deals are structured, the co-founders and early investors are more likely to walk home with not much. The acquisition is part of the companies’ strategic partnership for joint global expansion. With

  5. BIMB Holdings Bhd (Bank Islam) will be carrying out a private placement exercise, the shares will be priced at RM3.58 a piece to raise RM795.55 million. The banking group will be issuing 222,222,000 new share, approximately 12.0% of its issued share capital.

  6. Tan Sri Lim Wee Chai has became a minority shareholder in Malaysian private education group Minda Global Bhd, causing the latter’s share price to surge as much as 58% yesterday to 19 sen. According to its annual report, Minda runs institutions including the University of Cyberjaya, Asia Metropolitan University and Asia Metropolitan International School.

  7. DS Dr Zulkifli Mohamad Al-Bakri said his working visit to Saudi Arabia was dully sponsored by the Muslim World League (MWL). The working visit is said to cover bilateral talks on the haj and umrah pilgrimages, as well as meetings on regional and international issues regarding Islamic affairs. However, the video in this tweet tells a slightly different story.


5. AROUND THE WORLD 🌎

  1. Grab has finally confirmed that it will be going public with a listing on the Nasdaq stock exchange via a merger with Altimeter, a listed SPAC, valuing the company at USD39.6 bil (24.8x its 2020 revenue). It will raise up to USD4.5 bil from investors marking the biggest SPAC deal and also the largest ever share-sale by a Southeast Asian company in the US. Altimeter has pledged not to sell its shares for 3 years, much longer than the typical 6 to 12 months moratorium and will donate 10% of its sponsor shares to the GrabForGood Fund, a recently launched endowment set up by Grab to support quality-of-life programmes for its drivers, partners and the broader Southeast Asian community.

    Some highlights from its investor presentation:

    1. GMV: USD12.5 bil in 2020, up marginally from USD12.2 bil yoy

    2. Net Revenue: USD1.6 bil in 2020, +60% from USD1 bil yoy

    3. # of Transactions completed: 1.9 bil 

    4. EBITDA: -US0.8 bil, an improvement from -USD2.3 bil yoy 

    5. Monthly Transacting Users as of Dec 2020: 25 mil 

    There is a long list of risk factors relating to Grab in the presentation deck. After the multiple rounds of mega fundraising, curious how far the co-founder, Anthony Tan and Tan Hooi Ling (not related) stake in Grab has been diluted to. 

  1. The USD9 tril investment company, BlackRock, is joining forces with another investment giant, Temasek, the USD313 bil sovereign wealth fund of Singapore to launch Decarbonization Partners, an investment firm that will invest in companies developing technologies and services to help create a zero emission economy by 2050. The first fund will be initially seeded with USD600 mil, and with a goal to raise USD1 bil from external investors that share the same vision as them

  2. Johnson & Johnson single-dose Covid-19 vaccine is being suspended immediately in the US by the authorities after 6 people were reported with blood clots. This similar side effect is also experienced by AstraZeneca’s vaccine. The cases reported were all women between 18 and 48 years old. 6.8 mil doses have been administered so far in the US and J&J said it was on track to provide close to 100 mil doses to the US by end-May. 

  3. Japan is planning to release the wastewater used to cool the Fukushima nuclear reactor. It is part of the nation’s plan to decommission the power station after it was destroyed by one of the worst tsunami’s in history. Japan had previously warned that it is running out of space to contain the more than 1 mil tonnes of treated contaminated wastewater in storage tanks on-site.

    Although the water will be filtered to remove most nuclear contaminants, but tritium, a form of hydrogen, cannot be removed from it. However, releasing it into the ocean would dilute this particle below standards set by the WHO, but in concentration, it becomes cancerous. China and South Korea have lambasted this decision for obvious reasons, putting the environment and human life at risk. Guess what? This move has its supporter - Japan’s ally, the US.

  4. Sep 11 2021 marks the 20th year anniversary of the terrorist attack on the US that dragged the US into a 2-decade long war. President Biden is planning to pull out all US troops from Afghanistan before the anniversary a senior administration official said. There are roughly 3,500 US troops currently serving in Afghanistan. The war has cost trillions of dollars in addition to the lives of more than 2,000 US service members and at least 100,000 Afghan civilians.

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