Ride-hailing behemoth Grab has taken a big punch in the guts. Its share price dropped to a new nadir in spite of a reported 44% drop in revenue to $122 million for the 4th quarter of last year. This has resulted in a wipeout of USD $7.2 billion of Grab’s market cap in a single day!
Grab is a Singapore-based multi-utility app that ended the trading day of March 3 at $3.28, a shocking 37% reduction from the opening price at $5.21. Grab’s market price is now one-fourth of the original IPO price of $11.01.
The market cap for Grab now stands at $12.3 billion, well below 1/3rd of its valuation of $40 billion at the time of listing. Grab’s market cap now is significantly lower than the $14 billion valuations it reported during the H round series in 2019.
While the market cap for Grab already stood at half of its value before the announcement of the results, slated at $ 19.5 billion, the extremely poor Q4 results have dragged the valuation into the mire.
With this development, Grab takes hits in its mobility segment along with the new initiatives and enterprise segment for the 4th quarter, with the gross adjusted quarterly operating loss at 2 times to the tune of $557million.
In the meantime, Grab’s revenue for 2021 went up by 44% to $675 million, and its total operating loss increased 30% to more than 3.5 billion USD.
At the moment Grab is preparing a digibank launch in Singapore and delivery business for the next year. The co-founder of Grab, and its CEO, Anthony Tan was optimistic though, as he envisages 2022 to be a “watershed year” for the company.