Gores Guggenheim Inc. (GGPI) stock continued being bullish in the aftermarket, reaching $14.44 against its close at $12.81 on November 11. GGPI stock rose 15.82% intraday trading, reaching as high as $13.05 and as low as $11.09. Following the close of the market, GGPI rose a further 12.72% at a volume of 7.01 million.
On September 71, Electric-car maker Polestar signed an agreement to be publicly listed through merging with Gores Guggenheim. GGPI stock saw an uptrend following the agreement which didn’t last long. But the recent preliminary proxy filling by Polestar on November 12 put GGPI stock on a bullish path again.
GGPI and its Recent Acquisition
Gores Guggenheim Inc. (GGPI) is a Colorado-based special purpose acquisition company.
Formed by affiliates of Gores Group and Guggenheim Capital, GGPI priced its initial public offering at $750 million on March 24, 2021. The Gores Group has extensive experience of more than 30 years and more than 120 acquisitions. Over the 30-year-long period, The Gores Group has invested over $4 billion.
Its recent acquisition, Polestar, is a Swedish electric car maker that is backed by Volvo Car Group and affiliates of Geely Chairman Eric Lee. The company said that it expects to sell about 290,000 vehicles per year by 2025 with a plan to launch three new models by 2024. Polestar is also expanding its regional presence, now including 20 polestar spaces nationwide.
The GGPI and Polestar Agreement
According to the deal between Polestar and GGPI, Polestar will be publicly listed with an enterprise value of $20 billion. Polestar will also be supported by cash proceeds of $800 million from Gores Guggenheim. After the listing, Polestar will be renamed Polestar Automotive Holding UK, with the ticker symbol “PSNY” on Nasdaq.
While electric vehicle makers going public through SPACs might not be of great interest to investors, the potential this SPAC has would definitely interest them greatly. The combination of an experienced investment firm like GGPI with a racing company backed by a top premium automaker makes the GGPI stock a great investment opportunity.
The Founder’s Thoughts
The founder of The Gores Group, Alec Gores, sees polestar as a great opportunity as Polestar is an EV company on the way to creating its own niche. According to him, the Polestar team and Volvo at the back, Polestar has a high potential to achieve better than expected financial performance.
