Electric car maker Fisker plans to list on the New York Stock Exchange through a reverse merger with publicly-listed shell corporation Spartan Energy Acquisition (SPAQ) - Get Report, Fisker announced on Monday morning.
Spartan jumped 15% in pre-market trading on Monday on the news.
Fisker expects the move to generate more than $1 billion in gross proceeds, including $500 million in a fully committed private investment in public equity (PIPE) sale.
The pro forma equity value of the merger is about $2.9 billion at the $10 per share PIPE price. Spartan Energy is sponsored by an affiliate of private equity firm Apollo Global Management (APO) - Get Report.
Fisker said that the 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.
"Today, the realization of the world's first digital car company took another major step forward, advancing our mission to commercialize the world's most emotional and sustainable vehicles," said CEO Henrik Fisker.
Last week, Fisker completed $50 million in financing with proceeds going to support the next phase of engineering work on the Fisker Ocean luxury SUV, which is due to launch in 2022.
The $50 million Series C financing round was funded by Moore Strategic Ventures, the New York private investment vehicle of hedge-fund manager Louis Bacon.
Henrik Fisker, a one-time Aston-Martin designer, launched the Los Angeles company in 2016 and plans to begin selling the Ocean at a starting price of $37,500.
Shares of Spartan Energy jumped more than 11% on Friday following reports that the company could be making the reverse merger move soon.