Taiwan electric scooter maker Gogoro Inc. made its debut on the Nasdaq Global Select Market on Tuesday, but its shares plunged by more than 12 percent as tech stocks on the U.S. market suffered heavy losses amid rising fears that the Federal Reserve will become more aggressive in tightening its monetary policy.
As the closing bell rang on the Nasdaq market, Gogoro, which is the first Taiwanese unicorn start-up to list its shares on the market, closed down by 12.3 percent at US$14.02, while the tech-heavy Nasdaq index had fallen by 2.26 percent.
Shares of Gogoro rose by more than 38 percent at one point after the market opened, but this failed to be sustained in the afternoon session and the shares fell into negative territory by the end of Tuesday’s trading.
Gogoro shares and warrants are traded under the symbols “GGR” and “GGROW,” respectively, after the company completed a merger with special purpose acquisition company (SPAC) Poema Global Holdings Corp. on April 4. The new company operates while having retained the “Gogoro Inc.” name.
It has been 16 years since a Taiwanese company has listed in the United States though Gogoro’s listing is a so-called backdoor listing as Poema Global shares had been previously traded on the Nasdaq market.
“Gogoro battery swapping is transforming urban mobility in the world’s most densely populated cities by changing how people use and share portable energy,” Horace Luke (???), founder, chairman, and CEO of Gogoro, said in a statement.
“With innovative technology, an expanding global footprint, and an experienced management team, Gogoro is well-positioned to transform the urban mobility landscape and capitalize on the electric transition of nearly a billion two-wheel vehicles,” he said.
Gogoro’s merger with Poema Global was announced in September 2021.
Gogoro, which is also a leader in battery swapping technologies and ecosystems, said the merger plan was approved at an extraordinary general meeting held on March 31, and Poema Global’s shareholders agreed to the merger at their own meeting the same day.
The combination allowed Gogoro to raise at least US$335 million in cash for future growth, of which US$295 million will come from private investment in public equity (PIPE) financing commitments received in connection with the deal, according to the e-scooter brand.
Founded in 2011, Gogoro has become a leading e-scooter brand in Taiwan with former U.S. Vice President Al Gore as an early investor. In the recent two years, the company has extended its reach to China, India, and Indonesia by setting up strategic partnerships with its counterparts in these markets.
In January, Gogoro announced a collaboration with Electrum of Indonesia to develop electric vehicle infrastructure and build an EV ecosystem in the country, which is the third-largest two-wheel vehicle market in the world.
Source: Focus Taiwan News Channel