(Investors) – Fisker stock rose in its debut Friday on the New York Stock Exchange as blank-check mergers continue to churn out electric car stocks.
California-based Fisker (FSR) completed its merger with Spartan Energy Thursday, after Spartan stockholders approved the merger Wednesday.
Blank check company Spartan, backed by private equity firm Apollo Global Management (APO), announced a deal for the Fisker car company in July. The deal valued Fisker, which makes electric vehicles, at $2.9 billion.
Fisker expects to have $1 billion of cash to fund development of its first vehicle, the luxury Ocean midsize SUV. It will manufacture that electric vehicle with Magna International (MGA), targeting a Q4 2022 launch.
Reports said the Ocean will be assembled in Europe and should cost about $37,499.
Henrik Fisker launched the eponymous company in 2016. That came after an earlier venture went bankrupt. The now-defunct business produced a luxury plug-in hybrid electric Fisker car. However, the company discontinued the Karma EV due to poor sales.
Fisker Stock, Electric Car Stocks
At the close of trading, Fisker stock rose 13.2% to 10.14 on the stock market today. Among other electric car stocks, Tesla (TSLA) lost 5.5% Friday. Nio (NIO) shed 4.4%.
Fisker stock is coming public in a hot market for electric cars, fueled by soaring Tesla stock.
Nikola (NKLA) paved the way in going public via deals with a blank-check or special purpose acquisition company (SPAC). Subsequently Hyliion Holdings (HLYN) and Lordstown Motor (RIDE) also came public via blank-check deals.
Blank check companies snapped up electric car startups as investors hunt for the next Tesla.
A SPAC company is a shell entity with no commercial operations. It’s formed expressly to raise capital for buying an existing business.