CIIG Merger Corp leaps after big jump on EV SPAC deal
19/11/2020 12:45
** Shares of blank check co CIIG Merger Corp CIIC.O leap
>15% on strong premarket volumes, adding to big gain in previous
session
** CIIG's shares on Weds surged 24.3% to $13.36 after UK
electric van startup Arrival said plans to go public in $5.4 bln
reverse merger with the special purpose acquisition co
(SPAC) urn:newsml:reuters.com:*:nL1N2I416G
** Arrival should receive ~$660 mln from deal, including
~$260 mln CIIG raised in its Dec 2019 IPO (See filing https://www.sec.gov/Archives/edgar/data/1789760/000121390019026100/f424b41219_ciigmerger.htm)
and another $400 mln raised from institutional investors,
including BlackRock BLK.N
** This tie-up marks latest SPAC deal for an auto co
following public debuts this year of electric truck maker Nikola
Corporation NKLA.O and electric carmaker Fisker Inc FSR.N ,
as investors place bets on which startup will be the next Tesla
Inc TSLA.O
** Overall SPAC M&A volume has boomed in 2020 as more cos
eschew the traditional IPO route to public markets amid the
COVID-19 pandemic urn:newsml:reuters.com:*:nL4N2HZ3E1 urn:newsml:reuters.com:*:nL4N2HO3KN
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com))