Shares of electric car company Fisker rose sharply in their first day of trading Friday amid investors’ mania for electric vehicle stocks.
Fisker recently traded at $10.50, up 17%, on the New York Stock Exchange.
Fisker went public in a SPAC reverse merger with Spartan Energy Acquisition (SPAQ) - Get Spartan Energy Acquisition Corp. Class A Report that will net the hopeful Tesla (TSLA) - Get Tesla Inc Report competitor more than $1 billion in cash.
In a statement, Spartan Energy said the post-combination company with Fisker will give it more than $1 billion of cash on its balance sheet, net of transaction fees and expenses.
The reverse-merger is the latest in a string of special purpose acquisition company, or SPAC, reverse-mergers that have been all the rage on Wall Street this year.
Originally the domain of smaller mining companies trading on secondary markets looking to circumvent the arduous and expensive process of going public, companies including DraftKings (DKNG) - Get Draftkings, Inc. (DKNG) Report, Playboy, Virgin Galactic and others have raised billions through SPAC transactions this year.
SPACs are also known as "blank-check" companies because of their deemed sole purpose of writing a check to buy an existing public shell company and merge into it.
"We appreciate the ongoing support of Spartan’s investors and are pleased to see this important milestone toward the closing of the Fisker Transaction, which is expected to provide Fisker with ample resources to execute on the next phase of the business plan created by Henrik and team," Spartan CEO Geoffrey Strong said.
Fisker has said that proceeds from the public listing will go to provide funding to bring its first product, the Fisker Ocean electric SUV, to production in late 2022.