Swedish autonomous truck startup Einride is preparing to list on the New York Stock Exchange via a SPAC (Special Purpose Acquisition Company), with an estimated valuation of $1.8 billion.

SPAC IPOs: A Growing Alternative

SPACs represent an alternative route for companies wishing to go public. This method is often considered faster and less expensive than a traditional IPO (Initial Public Offering). However, the use of SPACs has seen mixed fortunes: after a peak in popularity in 2020, interest has declined due to falling stock prices and investor losses.

Einride's Prospects and Challenges

Roozbeh Charli, CEO of Einride, believes that more and more European companies will follow this path, attracted by the possibility of quickly accessing capital markets. Lorenzo Roversi, managing director UK & Nordics of IonQ (also listed via SPAC) and a member of the Einride board, agrees with this view, noting a growing interest in SPACs in the European deeptech sector.

Roversi highlighted the challenges associated with SPACs, particularly the need to manage the expectations of both new and existing investors. A high number of redemptions by shareholders can significantly reduce the cash available for the combined entity.

Timelines and External Factors

The merger between Einride and blank-check firm Legato is expected to be completed in the first half of this year, although Roversi mentioned the possibility of delays due to external factors, such as last year's US government shutdown, which impacted financial market activity.