The stock of electric vehicle startup Fisker Inc. jumped 13% in Friday’s public launch on the New York Stock Exchange.
Shares rose 19% before closing at $ 10.14 per share. It started trading Friday after completing a reverse merger this week with Spartan Energy Acquisition Corp., a special-purpose acquisition company, or SPAC, backed by Apollo Global Management.
California-based Fisker is among a growing group of electric vehicle startups speculating to the public through deals with SPAC, which has become a popular way of raising money on Wall Street because of its The manager is more streamlined than traditional initial public offerings.
According to Goldman Sachs, SPAC shares typically have an initial gain after the deal is announced but tend to outperform the broader market in the long run. Shares of Lordstown Motors, another electric vehicle company that went public via an SPAC, initially rose during Monday̵7;s Nasdaq launch but fell 28.3% on the week.
The SPAC deal is expected to give Fisker more than $ 1 billion to put its first product, the Fisker Ocean, into production by the end of 2022. Earlier this month, the company said auto supplier Magna International will provide the vehicle platform and build the Ocean.
As part of the deal, Magna will receive a warrant to buy a stake of up to 6% in Fisker, worth about $ 3 billion, Reuters reported.
The auto startup was founded by Henrik Fisker, a famous auto designer and operator whose former green car manufacturing company, Fisker Automotive, filed for bankruptcy in 2013. Fisker is credited with is the designer of the BMW Z8 and Aston Martin DB9.