Home ›› 17 Aug 2021 ›› World Biz
Former US oil investment bankers, portfolio managers and executives have formed over 20 listed blank-check companies to take renewable energy companies public, with more listings expected.
Investors are rushing to form these companies, known as Special Purpose Acquisition Companies (SPACs), as capital shifts from traditional oil and gas investments to low-carbon alternatives. SPACs have been most active in the technology and healthcare industries, but the alternative energy space is heating up.
More than 412 SPAC IPOs raising $121 billion have taken place so far in 2021, up from 247 raising $83 billion total last year, said Jay Ritter, a professor at the University of Florida specializing in IPOs.
Healthcare, financial technology and autonomous vehicles continue to be heavily represented, but alternative energy is gaining traction, the data shows.
“I would expect there would be more energy-related SPAC mergers,” Ritter said.
According to Reuters interviews with eight advisors, at least 10 companies are looking to launch additional renewable SPACs, beyond the 20 that have already publicly filed.
By contrast, only about three exploration and production SPACs are currently publicly filed with the SEC and none have launched in about 18 months, a sharp contrast with 2016 when oil prices crashed, and investors used SPACs to buy companies in a turnaround bet.
