Electric vehicle startup Fisker grows 13% on NYSE debut

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Shares of electric vehicle start-up Fisker Inc. closed 13% higher in the company’s public debut Friday on the New York Stock Exchange.The stock jumped 19% before closing at $ 10.14 a share. It began operations on Friday after finalizing a reverse merger this week with Spartan Energy Acquisition Corp., a special purpose acquisition company, or SPAC, backed by Apollo Global Management.

California-based Fisker is one of a growing group of speculative electric vehicle start-ups that have gone public through deals with PSPCs, which have become a popular way to raise funds on Wall Street because they have a more streamlined regulatory process than traditional initial public offerings.

According to Goldman Sachs, SPAC stocks typically get a first hit after the deal is announced, but tend to underperform the market as a whole. Stock prices of Lordstown Motors, another electric vehicle company that went public through a SPAC, initially debuted on Nasdaq on Monday, but were down 28.3% for the week.

The PSPC deal was expected to provide Fisker with more than $ 1 billion to bring its first product, the Fisker Ocean, into production by the end of 2022. The company said earlier this month that automotive supplier Magna International will supply the vehicle platform and will build the ocean.As part of the deal, Magna will receive warrants to buy up to 6% stake in Fisker, worth around $ 3 billion, Reuters reported.

The car start-up was founded by Henrik Fisker, a famous car designer and executive whose former green car maker Fisker Automotive filed for bankruptcy in 2013. Fisker is credited with designing the BMW Z8 and the ‘Aston Martin DB9.

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