All eyes are on Swvl when it starts trading on a SPAC combination – MovieUpdates

Mass transport and shared mobility provider Swvl have become public today in a milestone for technology ecosystems in Egypt and the Middle East† It is also a test for the company going public, despite a market that has recently been unfriendly to combinations with special purpose acquisition companies, or SPACs.

The Egypt-born, Dubai-based company has listed its shares on the Nasdaq for $10 through a merger with female-led Queen’s Gambit Growth Capital. The planned merger, in which Swvl will offer 20-30% of its total shares, was announced last July.

Following the closing, the combined company, now “Swvl Holding Corp,” will trade today under GMBT and GMBTW before switching to SWVL and SWVLW on April 1.

Swvl is the first company launched from Africa and the second company in the Middle East to be listed on Nasdaq through a SPAC merger† Anghami, an Abu Dhabi-based music streaming platform, did just that in February when it was listed with Vistas Media Acquisition for a valuation of $220 million.

Swvl has raised $121.5 million in private equity investment (PIPE) for this transaction† The European Bank for Reconstruction and Development (EBRD), Teklas Ventures, Chimera, Agility and Luxor Capital Group are some of its other investors. The company is currently valued at $1.5 billion.

In February, one of its investors, Atalaya Capital, withdrew from the transaction. And in an application, Queen’s Gambit announced the termination of forward purchase deals worth $100 million in SPAC stock and an additional $2 million through a private placement.

“The Forward” purchase Agree was done with a group, and it was just now access Additionally capital,” Victoria Grace, founder and CEO of Queen’s Gambit Capital, told MovieUpdates when asked whether the termination will affect the deal.

“Its termination will not affect the company’s valuation or anything around our fundamental deal, which is the merger of Queen’s Gambit with SWVL, so the valuation [stays] the same,” she said.

Investors withdrawing their interests and dollars from SPACs is not proprietary to Swvl. It’s a common occurrence — for example, when BuzzFeed went public last December, 94% of the $287.5 million raised by the SPAC was withdrawn — especially as the SPAC hype is collapsing in the face of a underperforming market and stricter regulations.

Despite the apparent setback, there is good news for Swvl. According to CFO Youssef Salem, the company has a additional $600 million from the proceeds and committed equity facility with B. Riley Principal to access in the coming weeks if certain conditions are met, he said.

Swvl was founded in 2017 by Mostafa Kandil, Mahmoud Nouh and Ahmed Sabbah. The trio started the company as a bus service in Egypt and other ridesharing services in emerging markets with fragmented public transport.

Bus services allow users to travel within the state by reserving seats on buses that operate a fixed route. However, Swvl’s offer is more extensive than bus services. Now the company offers city rides, carsharing and business services in the 10 cities where it operates in Africa and the Middle East.

The partnership between Swvl and Queen’s Gambit arose from a mutual interest of both parties

While looking for a company to to gainSwvl met the company’s criteria with blank checks: strong business fundamentals, mobility and logistics (one of the core verticals), and an ESG ethos around women and affordable transportation.

On the other hand, Swvl — raising more than $170 million in venture capital, expanding to more than 16 countries in Latin America, Asia and Africa; hiring executives from Facebook, Uber and Optimus; and the acquisition of Shotl, Viapool and door2door — was a quest for global dominance in the mobility space.

A SPAC with Queen’s Gambit was the most appropriate option from a financial point of view, and both sides value the sustainability angle around transportation – Swvl claims it has prevented around £289million of CO2 emissions since its inception.

The company plans to expand to several countries over the next six months, including Colombia, Mexico, South Africa, and the U.S.

In the meantime, all eyes will be on the company’s performance as it is officially will start trading tomorrow in a cooling SPAC market and a generally troubled public market.

“There is a weakness in the market, but as long as the company is active and delivering results, could be today people don’t pay attention to it, but in the coming months they will,” Grace said of the worrying SPAC and public markets.

I think the market will change just now as always and people are going back to the basics of how we look at the company’s performance. For Swvl they have covered every song ever presented to us. And that makes me super excited about this. And that’s the kind of target you want to work with.”

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