Polestar, the electric sister brand of Swedish automaker Volvo Cars, will be listed on the New York Stock Exchange. In addition, a price tag on Polestar of 20 billion dollars.
Nasdaq’s IPO on the technology exchange is via a merger with the empty stock market shell Gores Guggenheim. This is a so-called special determination acquisition company, or ‘spac’.
A merger with a spac has recently been a commonly used method in IPOs. Gores Guggenheim will contribute $800 million to Polestar, and institutional investors will contribute $250 million. The name of the newly listed company will then be Polestar Automotive.
Polestar is part of the Chinese Zhejiang Geely, which is also the parent company of Volvo Cars. The brand has already launched models on the market. Polestar plans to use the IPO proceeds to fund further growth. The company plans to proclamation an electric SUV next year.