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Freightos Moves Ahead With SPAC Plans to Go Public 

Digital freight booking and payment platform Freightos said it continues progress on its plans to go public through a blank check company in a deal that would give it an enterprise value of $435 million. 

The company confirmed Tuesday a confidential filing of its prospectus and proxy statement to the Securities and Exchange Commission. 

Freightos, which offers a digital marketplace for carriers and shippers to connect and transact, disclosed plans at the end of May to merge with special purpose acquisition company Gesher 1 Acquisition Corp. The deal would take Freightos public, with a listing on the Nasdaq under the ticker FROS, and also provide $80 million in new capital. 

Freightos last raised money in September 2018, when it closed a $44.4 million Series C led by Singapore Exchange. The raise brought its total funding to $94.4 million. 

“I think the reason [for the deal]was more to do with the timing for Freightos, not the markets,” Freightos CEO Zvi Schreiber said last week on Goldrock Capital’s “Definitely Uncertain” podcast. “So, markets are what they are. We’re not going public to exit. We’re going public to raise capital and to have a currency with which we can make more acquisitions. And if the market’s low or high on the day that we start trading, that’s really not relevant to the long-term rationale for going public. The long-term rationale for going public is as a better way to raise capital now and a better way to raise capital in the future.” 

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The company’s scooped up three other businesses since its 2012 founding. Its most recent purchase was digital air cargo booking company 7LFreight in January, bought at an undisclosed price. Freightos also acquired digital air cargo rate and sales platform Air Freight Bazaar in 2018 and air cargo booking and price software company WebCargo in 2016. 

Schreiber went on to say the timing for the deal made sense given the greater awareness of global supply chain complexities coming out of the pandemic, helping further sell the business to investors. 

“And so, I don’t need to spend as long as I used to—I still give a quick intro—but three, four years ago, I had to spend more time explaining [supply chains] to the average investor,” Schreiber told Goldrock Capital’s Darren Rockman. “So that’s helpful. I think that the market wants to see solutions to this.” 

Freightos last week reported revenue for the second quarter totaling $5.2 million, an increase of 30 percent from a year ago. The company said 150,000 transactions were completed on its platform during the quarter, up 163 percent from the year-ago period. 

Gross booking value, used as an indicator of business growth, rose 137 percent year-over-year to $155 million in the quarter. 

“Global shipping, and by extension, global trade continues to face significant challenges including intermittent lockdowns in China, military conflict, labor disputes and increasingly extreme weather,” Schreiber said at the time of the company’s second-quarter update. “This emphasizes the need for a digital freight revolution that brings the efficiency, agility and visibility that supply chains need to navigate volatility.” 

The Freightos merger with Gesher is expected to close as early as this year.