Top executives of Grab Holdings purchased more than $30 million worth of the Singapore-based ride-hailing and financial services company's shares this week after the stock fell to a more than three-year low. According to filings with the US Securities and Exchange Commission cited by Reuters, Grab CEO Anthony Tan purchased $30 million worth of shares on Monday, while President Alex Hungate also bought shares worth about $867,000. The purchases were made following the company's announcement of strategic acquisitions and share buybacks.
Grab shares have tumbled about 50% over the past year, falling to $2.74 on Friday, their lowest level since May 2023. The decline came after Grab announced plans to acquire buy-now-pay-later provider Atome Financial in a deal that could ultimately value the provider at up to $4.5 billion. The announcements on September 15 failed to lift the stock initially, with investors weighing the size of the Atome transaction and its potential impact on Grab's finances.
Following the executive purchases, Grab shares subsequently closed 8.9% higher on Tuesday, as reported by Reuters. The purchases came as Grab seeks to reassure investors about its strategy following the Atome deal. At a company townhall on Tuesday, Tan indicated that his personal investment reflected his confidence in the company's strategic direction.
The Atome acquisition would expand Grab's financial services business and strengthen its presence in consumer lending. Additionally, Grab unveiled plans to repurchase about $900 million worth of its shares over the next 12 months, providing additional support for shareholders after the recent sell-off. The combination of strategic expansion and share buyback program represents Grab's effort to demonstrate confidence in its future growth prospects.
