Electric vehicle startup Fisker Inc.'s shares closed 13% on Friday's public debut on the New York Stock Exchange.
The stock rose as much as 19% before closing at $ 10.14 per share. Trading began Friday after a reverse merger this week with Spartan Energy Acquisition Corp., a SPAC [Special Purpose Acquisition Company] backed by Apollo Global Management.
California-based Fisker is one of a growing group of speculative electric vehicle startups going public through contracts with SPACs. These are a popular way to raise money on Wall Street as they have a more streamlined regulatory process than traditional IPOs.
SPAC stocks typically get their first pop after the deal is announced, but they tend to do worse than the broader market in the long run, according to Goldman Sachs. Lordstown Motors, another electric vehicle maker that was listed on the stock exchange via a SPAC, fell on Monday on its Nasdaq debut, but fell 28.3% over the course of the week.
The SPAC deal should provide Fisker with more than $ 1 billion to bring its first product, the Fisker Ocean, into production in late 2022. The company said earlier this month that auto supplier Magna International would supply the vehicle platform and build the ocean.
As part of the deal, Magna will receive warrants to purchase up to a 6% stake in Fisker valued at around $ 3 billion, Reuters reported.
The automotive start-up was founded by Henrik Fisker, a well-known car designer and manager whose previous eco-car company, Fisker Automotive, filed for bankruptcy in 2013. Fisker is credited with designing the BMW Z8 and the Aston Martin DB9.