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Joby Aviation Stock Rises in First Trade After SPAC Merger

Joby Aviation, a startup air-taxi ride-sharing company, went public through a SPAC merger. The stock opened higher.
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Joby Aviation RTP, the electric-aircraft ride-sharing provider, was higher after its first trades since it merged with special purpose acquisition company Reinvent Technology.

Shares of the company, which Bloomberg reported is backed by investors including Uber  (UBER) - Get Free Report and Toyota  (TM) - Get Free Report, rose 7.3% to $10.76 shortly after the opening bell. 

Joby, which aspires to build and operate a commercial fleet of aerial taxis by 2024, on Wednesday began trading under the ticker symbol JOBY. 

"Aviation connects the world in critically important ways, but today it does that at the expense of our planet," Chief Executive JoeBen Bevirt said in a statement. 

"By taking Joby public we have the opportunity to drive a renaissance in aviation, making emissions-free flight a part of everyday life."

The deal values Joby at $4.5 billion, with proceeds raised plus cash on hand totaling $1.6 billion at March 31.

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Joby's aircraft are slated to have a range of 150 miles on a single charge and can transport a pilot and four passengers at speeds of up to 200 miles per hour. 

The company, which was founded in 2009, has more than 800 employees with offices in Santa Cruz, San Carlos, and Marina, Calif., as well as Washington and Munich. 

The company has conducted more than 1,000 test flights in the past 10 years. Last year it became the first company to agree to a certification basis for an electric vertical takeoff and landing, or Evtol, aircraft with the Federal Aviation Administration. 

Joby will use proceeds from the transaction to fund the business through the start of commercial operations in 2024. 

SPACs, or blank-check companies, are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.