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KUALA LUMPUR – Just over three months into Grab’s Nasdaq listing, the Southeast Asian firm has lost US$22 billion (RM92 billion) in value, plunging 63% since its debut in December.
Its latest 37% drop yesterday was its biggest selloff, following a quarterly net loss that nearly doubled from last year, reported Bloomberg.
The selloff recorded about an exchange of 115 million shares and reportedly more than four-times the average over the last month. It also recorded a US$1.06 billion loss in Q4.
Earlier, Grab reported its Q4 losses were due to higher spending on incentives for its drivers and customers as well as non-cash interest costs and expenses related to its public listing. It logged a revenue of US$122 million, a 44% plunge.
Since its founding, the Singapore-based company has been reporting losses and is yet to reach profitability, made worse by the movement restrictions brought on by the pandemic.
The company in 2021 saw a bigger loss of US$3.4 billion compared with US$2.6 billion the previous year. Its gross merchandise value totalled US$16.1 billion, exceeding its projection of US$15 billion.
In Q4, Grab also spent US$443.3 million on delivery incentives.
On January 31, Grab completed its acquisition of a majority stake in Malaysian supermarket chain Jaya Grocer.
In line with the move, the two companies also announced the roll out of GrabPay and GrabRewards across all Jaya Grocer physical retail stores, expanding usage of Grab’s cashless wallet. – The Vibes, March 4, 2022