Fisker Opts for SPAC as Route to Take Electric Vehicle Maker Public
Earlier this week, Fisker Inc., a pioneer in developing electric vehicles, announced it would become a publicly traded company by merging with Special Purpose Acquisition Company (SPAC) Spartan Energy Acquisition Corp. (NYSE: SPAQ). As rumors of the potential merger grew, shares of Spartan Energy have become a hot commodity for investors, jumping more than 40% in the days leading up to the official announcement before settling back a bit by week's end (but still up 37% for the year).
Historically, an initial public offering (IPO) has been the common route for a company seeking to issue stock to be traded on the open market. However, IPOs can be an exhaustive process for companies to execute and have recently waned in popularity.
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Source Fool.com
