The shares of starting electric vehicles Fisker Inc. closed 13% in the company’s public debut on Friday on the New York Stock Exchange.
Shares jumped 19% before closing at $ 10.14 per share. It began trading on Friday after finalizing a reverse merger with Spartan Energy Acquisition Corp., a special-purpose acquisition company or SPAC backed by Apollo Global Management, this week.
The California-based Fisker is among a growing group of speculative electric starter vehicles that go public through SPAC deals that have become a popular way to raise money on Wall Street as they have a more streamlined regulatory process than traditional initial public offerings.
SPAC shares typically receive initial pop after the deal is announced, but in the long run tend to perform less than the broader market, according to Goldman Sachs. Shares of Lordstown Motors, another electric vehicle company released through SPAC, initially appeared in its Nasdaq debut on Monday, but fell 28.3 percent for the week.
The SPAC deal was expected to provide Fisker with more than $ 1
As part of the deal, Magna will receive warrants to buy a stake of up to 6% in Fisker, worth about $ 3 billion, Reuters reported.
The car launch was founded by Henrik Fisker, a renowned automotive designer and CEO whose previous green car company, Fisker Automotive, filed for bankruptcy in 2013. Fisker is credited with designing the BMW Z8 and Aston Martin DB9.