Gogoro is the latest electric vehicle (EV) company to jump aboard the special purpose acquisition company (SPAC) bandwagon. The company announced today that it would be merging with Poema Global Holdings (NASDAQ: PPGH). So what is Gogoro and when can I buy shares?
What is Gogoro?
Headquartered in Taiwan, Gogoro is an e-scooter and battery-swapping tech startup that operates a refueling platform for urban electric scooters, mopeds, and motorcycles.
Its own brands are called Smart scooters and Eeyo electric bikes, but it also makes its platform available through its Powered by Gogoro Network (PBGN) program. This allows its partners to create vehicles that use Gogoro’s batteries and swapping stations.
In recent years, Gogoro has debuted scooter-sharing services in Europe and battery-sharing capabilities in Japan. Plus, the firm has unveiled its plans to enter the Indian and Chinese markets via deals with Hero MotoCorp, Dachangjiang Group, and Yadea Group Holdings this year. Back in June, Gogoro also signed a partnership with Taiwan’s Foxconn, a big Apple supplier, to work together on batteries and manufacturing.
When can I buy Gogoro stock?
Gogoro has not set an exact date for the listing but it is expected to close in the first quarter of 2022.
Gogoro is expecting to make $550 million from the debut, including an oversubscribed private investment in public equity of over $250 million and $345 million held in trust by Poema Global.
As it is not a public company (yet) there are not that many financial figures to ponder over. Gogoro has said that in less than five years, it has accumulated over $1 billion in sales. It has also stated that it has 400,000 subscribers for its battery swapping infrastructure.
Gogoro’s growth potential
The company is planning on launching its China pilot program in Hangzhou in Q4. This move will be closely followed by another six cities in 2022.
Hero MotoCorp is currently building its first Gogoro-powered vehicle in India and will start rolling out its battery-swapping infrastructure in New Delhi next year.
CEO, Horace Luke, told news reporters:
“We see the demand in China as a lot bigger than we first anticipated, so that’s all good news for us, and that’s one of the fundamental reasons why we need to go public because we need to raise the capital and resources needed for us to actually contribute in a big way to these markets.”
While Gogoro may be the fastest-growing and biggest electric scooter maker in Taiwan, it is still trailing big players like Kymco and Sanyang Motor. Despite the government offering subsidies on EVs, the market is still dominated by cheaper-priced petrol scooters.
To succeed, the company will have to focus on continuing to expand into other markets outside Taiwan. If successful, this SPAC will be one to watch as the EV boom is definitely not slowing down anytime soon.
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Content Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.