Getaround SPAC Is Coming: Details on Car-Sharing Brand’s Market Debut

Car-sharing company Getaround is going public. Here are details on the Getaround SPAC price and date. Let's see what investors can expect.

Rachel Curry - Author

May 12 2022, Published 1:26 p.m. ET

Online car-sharing marketplace Getaround is going public via a SPAC deal. After merging with a publicly-traded blank-check firm, Getaround will have a valuation in the billions after the merger.

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Here are the details on the Getaround SPAC, including who the brand is merging with, what it’s worth, how much money the SPAC plans to raise, and when it’s going public.

Getaround is poised for a $1.2 billion post-merger valuation.

After merging with blank-check firm InterPrivate II Acquisition Corp. (IPVA), Getaround is estimated to be worth about $1.2 billion. IPVA hit the market on April 30, 2021, and has ultimately chosen Getaround as its target for a private-to-public back-door merger.

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Sam Zaid founded Getaround in 2009. The company made two acquisitions of its own in 2019 and bought for $12 million and French car rental marketplace Drivy for $300 million.

The Getaround SPAC deal hopes to raise $434 million, pricing at SPAC norms.

IPVA and Getaround aim to raise $434 million in the SPAC deal. Most SPAC stocks launch at $10 per share and fluctuate around that value until the merger, when the secondary market chimes in to value the shares.

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Altogether, the Getaround SPAC deal is big for a struggling SPAC market. Also, there's no denying the gravity of the transition from private to public during a historical bear market. The tech-heavy Nasdaq Composite is down 27.84 percent YTD. While companies pumped out one SPAC deal after another during the COVID-19 pandemic, the rally has dramatically slowed, if not frozen.

When will Getaround go public? Here's what we know about the merger date.

As of May 12, IPVA retains its ticker on the market. Once the Getaround merger is complete, the ticker will transition to be reflective of the post-merger entity. At that point, Getaround will trade under the ticker symbol “GETR” on the NYSE.

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The deal is poised to be finalized in the second half of 2022. According to a press release, Getaround “expects the net transaction proceeds to provide adequate funding to achieve adjusted EBITDA breakeven under its current business plan.”

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Should you invest in Getaround SPAC stock?

Getaround operates in more than 950 cities across eight countries. The car-sharing marketplace boasts at least 66,000 active cars and trucks. The company’s gross booking value in 2021 was $167 million.

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The stock is a good candidate for ESG (environmental, social, and governance) investing due to its push for affordability in lower-income communities and reduced CO2 emissions on the roads.

In general, SPAC stocks are risky, and the current market may not be a suitable landing strip for GETR stock. However, market conditions could easily change in the latter half of the year.

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Zaid said the SPAC proceeds won’t be in vain. He said, “Proceeds will be used for continued product innovation, to densify the supply of digitally connected cars in our existing markets, and to increase both the mix and proximity of our cars and trucks for consumers. We will also look to bring our proven model to new markets, both domestic and abroad.”

Altogether, GETR stock could be a beneficial portfolio addition, especially for globally-minded impact investors. Still, waiting until the post-SPAC slump that's statistically likely to occur may behoove you. Post-merger SPACs see a median return of -65 percent in the 12 months after merging.


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