CNBC’s Jim Cramer found out about Southeast Asian giant Grab on Monday, though he advised investors to wait for lower price levels as Wall Street’s appetite for SPAC deals diminishes.
Grab, an app that offers transportation, food delivery, hotel booking and other services, will merge with Altimeter Growth for $ 39.6 billion in the world’s largest blank check deal to date.
“I don’t like the price right now, but if you’re waiting for a weakness, and there probably will be, you have my permission to buy some,” said the host of “Mad Money.”
Cramer said the stock would be more attractive below $ 11.50, down about 20%.
“The thing about Grab … it’s a great company, but it’s also totally out of style with the Wall Street fashion show,” he added. “It’s a fast-growing digital game at a time when money managers want chimney stocks.”
Smokestack refers to companies in more cyclical sectors of the market, such as energy and industry.
Grab will list on the Nasdaq with the ticker GRAB when the deal is closed with Altimeter, a specialty acquisition company. The stock, currently under the symbol AGC, last traded at $ 14.01 on Monday, up 4.4% on Friday.
Altimeter Growth is run by venture capitalist Brad Gerstner, who also got behind Snowflake and Roblox. Cramer emphasized that the company agreed to a three-year lock-up on its shares.
Grab reported $ 1.6 billion in adjusted net revenues in 2020, surpassing its pre-pandemic performance. According to a filing, the company expects an annual growth of 42% through 2023.
Grab was ranked number 16 on last year’s 2020 CNBC Disruptor 50 list.