Gogoro to List on Nasdaq via $2.35B SPAC Deal

Gogoro to Become Publicly Traded via Nasdaq Listing

Gogoro, a company renowned for its innovative electric Smartscooters and pioneering battery swapping network, has announced its intention to list on the Nasdaq stock exchange. This will be achieved through a merger with Poema Global, a Special Purpose Acquisition Company (SPAC) linked to Princeville Capital.

Deal Details and Financial Projections

The transaction establishes Gogoro’s enterprise value at $2.35 billion, with completion anticipated in the first quarter of 2022. Following the merger, the newly formed entity will operate under the name Gogoro Inc. and be traded using the ticker symbol GGR.

Gogoro projects receiving $550 million in proceeds, assuming no investors redeem their shares. This includes a fully subscribed Private Investment in Public Equity (PIPE) offering exceeding $250 million, alongside the $345 million already held in trust by Poema Global.

Key Investors in the PIPE Offering

The PIPE investment features participation from several strategic partners. These include Hon Hai (Foxconn) Technology Group, GoTo – the prominent Indonesian tech company resulting from the Gojek and Tokopedia merger – and a range of existing and new investors. Notable participants are Generation Investment Management, Taiwan’s National Development Fund, Temasek, and Dr. Samuel Yin of Ruentex Group, Gogoro’s initial investor.

Strategic Use of Capital

The acquired capital will primarily fuel Gogoro’s expansion initiatives across key markets such as China, India, and Southeast Asia. Furthermore, it will support the continued advancement of the company’s technological ecosystem.

Gogoro’s Technology and Network

Established a decade ago in Taiwan, Gogoro’s core technology centers around intelligent, swappable batteries and the associated charging infrastructure. Complementing this is cloud-based software that continuously monitors vehicle and battery performance and condition.

Beyond its own branded products – including Smartscooters and Eeyo electric bicycles – Gogoro extends access to its platform through the Powered by Gogoro Network (PBGN) program. This allows partners to develop vehicles compatible with Gogoro’s battery and swapping station infrastructure.

Recent Partnerships and Market Expansion

This Nasdaq listing follows recent announcements of significant partnerships in both China and India. In China, Gogoro is collaborating with Yadea and DCJ to establish a battery-swapping network. In India, Hero MotoCorp, a leading global two-wheel vehicle manufacturer, will introduce scooters leveraging Gogoro’s technology.

Gogoro also maintains existing collaborations with manufacturers like Yamaha, Suzuki, AeonMotor, PGO, and CMC eMOVING.

CEO on the Decision to Go Public

“We really now need to take our company to the next level,” stated Horace Luke, founder and CEO of Gogoro, in an interview with TechCrunch. He explained that the SPAC route was chosen to facilitate a more in-depth discussion of the business opportunity, structure, and partnerships, enabling a more accurate company valuation.

“Given our business plans, it gives us a great opportunity to focus on the expansion,” Luke added.

Alignment with Poema Global

Bruce Aitken, Gogoro’s chief financial officer, highlighted the alignment between Gogoro and Poema Global. “Their thesis is quite aligned with ours,” he said. “They have, for example, a sustainability fund, so our passion for green and sustainability merges well with that.”

Revenue and Subscriber Growth

Gogoro reports exceeding $1 billion in revenue and securing over 400,000 subscribers for its battery swapping infrastructure within the last five years. A pilot program is scheduled to launch in Hangzhou, China, during the fourth quarter of the current year, with plans to expand to approximately six additional cities in the following year.

Hero MotoCorp is currently developing its inaugural Gogoro-powered vehicle and intends to initiate the deployment of its battery-swapping infrastructure in New Delhi in 2022.

Future Growth and Market Potential

“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,” Luke explained.

Southeast Asia Expansion

When questioned about potential partnerships similar to the one with GoTo to penetrate the Southeast Asian market, Luke emphasized the region’s significance as the third-largest two-wheeler market globally, following China and India. He noted that GoTo’s investment in Gogoro will initiate discussions, though no concrete announcements are currently planned beyond their participation in the PIPE.

Poema Global’s Perspective

Homer Sun, CEO of Poema Global, stated in a press release, “We believe the technology differentiation Gogoro has developed in combination with the world-class partnerships it has forged will drive significant growth opportunities in the two largest two-wheeler markets in the world. We are committed with working alongside Gogoro’s outstanding management team to support its geographic expansion plans and its transition to a Nasdaq-listed company.”