Polestar, a Volvo-owned all-electric car company, has announced that it will go public through a SPAC.
It is the latest in a long line of electric vehicle manufacturers to make the switch in the last year.
EV company such Faraday Future, Lucid Motors, Canoo, and many others have gone public through SPAC offers in the last year.
It resulted in billions of dollars going into EV startups, driving the auto industry's electric conversion.
Polestar, which was spun off from Volvo as an all-electric brand and is now owned by Geely in China, is following suit.
Polestar announced today that it will reverse merge with Gores Guggenheim to become a public company:
“Polestar Performance AB and its affiliates (“Polestar” or the “Company”), a global electric performance car company, and Gores Guggenheim, Inc. (“Gores Guggenheim”), a special purpose acquisition company (“SPAC”) formed by affiliates of The Gores Group and Guggenheim Capital, LLC, announced today that they have entered into a definitive business combination agreement. The combined company will be held by a new public company named Polestar Automotive Holding UK Limited, which is planned to be listed on Nasdaq under the ticker symbol "PSNY" after the proposed business combination is completed.
Gores Guggenheim has $800 million in cash to invest into the deal, and they're also working on a $250 million PIPE financing arrangement to provide over $1 billion in liquidity later.
Polestar is valued at $20 billion in the deal:
“The merged company's enterprise value is estimated to be over USD 20 billion, representing around 3.0x 2023E revenue and 1.5x 2024E revenue. Polestar's current equity holders will keep about 94 percent of the company and will roll all of their stock interests into the pro forma company.”
The carmaker has large operations in numerous areas and delivered 10,000 electric vehicles last year, but its financial position is known.
Polestar's CEO, Thomas Ingenlath, had the following to say about the news:
“Polestar is in a really exciting period right now. We want to expand to 30 markets by 2023, with two award-winning cars on the road in 14 active countries across three continents. We're happy to announce that we'll be introducing three new premium electric cars to our lineup by 2024, starting with our first SUV in 2022. We've found a partner in Alec and the Gores Guggenheim team who has a track record of bringing leading companies to public markets.Polestar will be installed as a financially healthy, future-proof global electric car company as a result of the proposed corporate combination and IPO. It will allow us to accelerate our growth, strategy, and, most importantly, our purpose of achieving sustainable mobility.”
According to him, the manufacturer expects to introduce a new electric SUV to its inventory next year, as well as two more models in 2024.
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