Shares in the commissioning of electric vehicles Fisker Inc. closed 13% on the company’s public debut on Friday on the New York Stock Exchange.
The stock rose as much as 19% before closing at $ 10.14 per share. Trading began Friday after a reverse merger with Spartan Energy Acquisition Corp., a SPAC-backed purpose acquisition company (SPAC), was completed this week Apollo Global Management.
California-based Fisker is one of a growing group of speculative launches of electric vehicles Go public through deals with SPACs, which have become a popular method of raising money on Wall Street because of their tighter regulatory process than traditional IPOs.
SPAC stocks typically get their first pop after the deal is announced, but they tend to do worse than the broader market in the long run, according to Goldman Sachs. Stock quotes of Lordstown Motors, another electric vehicle manufacturer that was listed on the stock exchange through a SPAC, initially appeared on its Nasdaq debut Monday, however, was 28.3% for the week.
The SPAC deal should provide Fisker with more than $ 1 billion to bring its first product, the Fisker Ocean, into production in late 2022. The enterprise Auto supplier Magna International said earlier this month will supply the vehicle platform and build the ocean.
As part of the deal, Magna will receive warrants to purchase up to a 6% stake in Fisker valued at around $ 3 billion, Reuters reported.
The automotive start-up was founded by Henrik Fisker, a well-known car designer and manager whose previous eco-car company, Fisker Automotive, filed for bankruptcy in 2013. Fisker is credited with designing the BMW Z8 and the Aston Martin DB9.