Swedish electric car maker Polestar said on Monday it would go public by merging with a blank check company backed by billionaire Alec Gores and investment bank Guggenheim Partners for a valuation of $ 20 billion, including debt.
Polestar’s listing plan comes as automakers focus on environmentally friendly vehicles, amid mounting pressure from lawmakers and investors concerned about climate change.
The deal with Gores Guggenheim will include cash proceeds of around $ 800 million, assuming no share buybacks by public shareholders of the blank check company are made.
The deal also includes a $ 250 million PIPE, or private investment in public stocks, from leading institutional investors.
Gores Guggenheim shares rose 7.8% pre-market.
Polestar, backed by Volvo Car Group and subsidiaries of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors.
The premium electric vehicle maker’s offering includes two models – a hybrid performance car known as the Polestar 1 and a fully electric Polestar 2 that are currently on the roads of Europe, North America and Europe. ‘Asia.
The company, which delivered around 10,000 vehicles last year, said it plans to sell around 290,000 vehicles a year by 2025 and plans to launch three new models by 2024.
Polestar told the Beijing Motor Show last year that it has another model in development called the Precept, which is a larger sedan.
Polestar raised $ 550 million in external funding in April and in June announced plans to build Polestar 3 electric sport utility vehicles at Volvo’s U.S. plant in South Carolina starting next year.
Current Polestar shareholders, who will renew their entire stake in the merged company, will retain around 94% of the capital, he said.
After the merger, the combined company will be called Polestar Automotive Holding UK Ltd. and will trade under the symbol “PSNY” on the Nasdaq.