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Investing.com -- Grab, the Singapore-based ride-hailing and delivery company, has announced plans to raise $1.25 billion through the issuance of convertible bonds.
The funds raised will be used for share buybacks and potential acquisitions, as the company aims to enhance its strategic flexibility while maintaining high standards for any deals.
The convertible bonds, due in 2030, will also be used to fund Grab’s previously announced $500 million buyback program. To date, the company has repurchased $226 million worth of shares.
This announcement follows recent denials from Grab regarding potential merger talks with Indonesian rival GoTo Gojek Tokopedia. The company, listed on the NASDAQ, has repeatedly refuted media reports suggesting discussions for a multibillion merger with the Indonesian ride-hailing and delivery firm.
Grab’s plan to raise funds via convertible bonds emphasizes its focus on organic growth and prudent capital allocation. The company, which also offers financial services through its super app, has consistently denied any merger talks with Gojek, underlining its commitment to independent growth.
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