Gogoro’s SPAC Listing on Nasdaq Was a Reasonable Choice in Its Time

Let me say something in Gogoro’s defense. I have always felt that, at the time, Gogoro’s decision to list on Nasdaq through a special purpose acquisition company (SPAC) was the right choice. We generally should not judge it through hindsight—especially its subsequent share-price performance—but should return to the circumstances of 2021–2022. Gogoro listed on Nasdaq through a SPAC and raised a total of US$344 million for future operating funding, according to media reports. Raising US$344 million in one Nasdaq listing translates to roughly NT$11–11.5 billion. Gogoro is fundamentally playing a game that requires large amounts of capital, an opportunity difficult to resist for a startup that must keep burning substantial sums. Personally, I am more reserved about whether Gogoro suits Taiwan’s more pragmatic capital markets, which put greater emphasis on a business model with demonstrated profitability. A typical Taiwanese IPO that raises NT$1 billion in one go is already a fairly large deal. Taiwan’s current market remains better suited to SMEs seeking a listing and capital. At yesterday’s Taiwan Innovation Board seminar, Mega Securities general manager Wu Mingzong noted that, although Taiwanese IPOs do not raise very much, subsequent public offerings (SPOs) are easy to carry out. Many issuers conduct an SPO every two to three years. Taiwan’s capital markets offer reasonable liquidity, accessible follow-on offerings, and valuations that are not low. SMEs can obtain funding for their short- to medium-term development and then keep advancing through small, rapid steps. That is a distinctive feature of Taiwan’s capital markets. Over twenty years, a good company may have the opportunity to grow more than twentyfold. ---- Now accepting sponsorships from TWSE and TPEx!