Kensington Capital Acquisition, a blank check company targeting the automotive industry, raised $200 million by offering 20 million units at $10 in its initial public offering. The company originally planned to offer raise $175 million by offering 17.5 million units. Each unit consists of one share of common stock and one-half of a warrant, exercisable at $11.50.
Kensington Capital Acquisition is led by CEO and Chairman Justin Mirro, founder of automotive-focused investment firm and sponsor Kensington Capital, where he currently serves as President. Mirro also has experience as former head of automotive investment banking at Jefferies, Moelis, and RBC Capital Markets, and former Chairman of Pure Power Technologies. Its seven-member board includes the former CEOs of Chrysler, Thule Group, and Lear. The SPAC intends to leverage its management team's industry experience and network, targeting the automotive and automotive-related sector.
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Next-generation automotive plays have recently been an attractive area for SPACs. Earlier this month, VectoIQ Acquisition completed its proposed merger with BEV/FCEV truck startup Nikola (NKLA), whose common shares closed Thursday at $71.10. A week ago, Tortoise Acquisition (SHLL.U) announced a proposed merger with electric powertrain company Hyliion, sending the SPAC's shares soaring; it closed Thursday at $17.40.
Kensington Capital Acquisition plans to list on the NYSE under the symbol KCAC.U. UBS Investment Bank, Stifel and Baird acted as lead managers on the deal.
