Grab execs buy back shares after stock hits 3-year low on Atome deal
Grab shares fell to US$2.74 on Sept 18, the lowest level since May 2023.
In the aftermath of Grab's stock plummeting to a three-year low, executives of the Singapore-based ride-hailing and financial service firm made significant moves to bolster their stake in the company. Grab shares tumbled 50% over the past year, reaching a low of US$2.74 on September 18, its lowest level since May 2023. The decline occurred shortly after the company announced its intention to acquire buy-now-pay-later provider Atome Financial, a deal potentially valuing the target at up to US$4.5 billion.
Despite the company's announcement of a plan to repurchase around US$900 million worth of shares within the next 12 months, the news failed to lift Grab's stock on September 15.
On September 21, Grab's CEO Anthony Tan and President Alex Hungate demonstrated their confidence in the company's strategy and direction by purchasing shares themselves. Tan bought shares valued at US$30 million, while Hungate acquired approximately US$867,000 worth of shares, according to filings with the US Securities and Exchange Commission.
Following their purchases, Grab's shares surged 8.9% on September 22, showing a brief recovery from the recent slump. At a company town hall meeting on September 22, Tan reiterated his belief in the company's strategy and direction, stating, "I have put my money where my mouth is... I believe in our strategy and our direction."
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
