ST Energy Transition I, a blank check company targeting energy transition and clean energy technology, filed on Monday with the SEC to raise up to $250 million in an initial public offering.
The company plans to raise $250 million by offering 25 million SAIL (Stakeholder Aligned Initial Listing) securities at $10. Each SAIL security consists of one share of common stock and one-half of a warrant, exercisable at $11.50. At the proposed deal size, ST Energy Transition I would command a market value of $263 million. The sponsor promote is only 5% due to the SAIL construct, which uses a performance-based incentive structure to create alignment.
ST Energy Transition I is led by Chairman John Fredriksen, oil tanker and shipping billionaire who currently serves as President and Chair of shipping company Frontline, and CEO Gunnar Eliassen, who currently works for Fredriksen's family holding company Seatankers Group and previously was a Partner at Pareto Securities.
The company plans to leverage management's experience and target opportunities that contribute in positive ways towards energy transition and clean energy technology, focusing on businesses with growth potential, earnings visibility, and defendable market positions, among other characteristics.
The Hamilton, Bermuda-based company was founded in 2021 and plans to list on the NYSE under the symbol STET.U. ST Energy Transition I filed confidentially on July 14, 2021. Morgan Stanley is the sole bookrunner on the deal.
