Despite the SPAC market experiencing significant struggles recently, Getaround going public is a sign that some travel companies are looking beyond stock market choppiness.
Getaround, a digital carsharing marketplace, will go public in the United States through a merger with a blank-check firm that values the combined entity at about $1.2 billion, the companies said on Wednesday.
The deal with InterPrivate II Acquisition Corp will provide Getaround with up to $434 million in gross proceeds.
Special purpose acquisition companies, or SPACs, are listed but have no business operations, except hunting for a private company to take public and allowing it to bypass the scrutiny that comes with a traditional IPO.
Getaround, founded in 2009, runs a digital platform for its customers to share vehicles in over 950 cities globally. The company said it will use the proceeds to invest in products and expand to new markets.
The SPAC market has sagged since the collapse of some high-profile blank-check listings amid overall grim market conditions. Interest in what was once among the hottest trends on Wall Street has also waned against the backdrop of increased regulatory scrutiny.
Goldman Sachs Group Inc earlier this week said it was reducing its involvement with blank-check companies, as the U.S. Securities and Exchange Commission continues to clamp down with new draft rules.
After the deal closes, Getaround will list on the New York Stock Exchange under the ticker “GETR”.
(Reporting by Manya Saini in Bengaluru; Editing by Shounak Dasgupta)
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