AP Acquisition Corp, a SPAC with a focus on decarbonisation and the renewable energy sector, is looking to raise about $150 million in an initial public offering (IPO) on the New York Stock Exchange (NYSE), the company said in a statement.
SPACs are blank cheque companies that raise capital solely to acquire private entities with the aim of eventually taking them public.
The Hong Kong-based company priced its 15 million units at $10 apiece. Each unit consists of one share of common stock and one-half of a warrant and only whole warrants are exercisable at $11.50 per share.
The units were listed on the NYSE last Friday. Meanwhile, the offering is expected to close on Dec. 22, 2021.
Credit Suisse Securities is acting as the book-running manager of the offering.
AP Acquisition, focused on Asia (excluding Mainland China, Hong Kong, and Macau) and European markets, is sponsored by AP Sponsor LLP, an affiliate of Japan’s first private equity firm Advantage Partners Inc. The company’s management team includes chairman and director Richard Folsom as well as chief executive officer and director Keiichi Suzuki.
Suzuki, who joined Advantage Partners after serving for 29 years in Mitsubishi Corporation, was named partner and head of renewables and sustainability earlier this year. Suzuki was tasked to lead the newly established strategy platform at AP to pursue investment opportunities in sustainability, renewable energy and carbon reduction.
IPO of US SPACs hit a record high in the first three months of 2021 before starting to slow down as stakeholders grew warier of its potential risks. Still, many Asian companies are willing to take the route to tap the US market.
In another SPAC listing from the renewable energy space, ReNew Energy, the UK-based holding company for India’s renewable energy firm ReNew Power, listed on the Nasdaq in late August, hitting market capitalisation of nearly $4.5 billion.