A Long Island company goes public with a European manufacturer of charging stations as part of its second operation focused on the electric vehicle market.
Kensington Capital Acquisition Corp. Westbury-based II, a so-called “blank check company,” raised around $ 330 million for charger maker Wallbox through the merger announced in June.
Once the transaction is completed, Barcelona-based Wallbox will be listed on the New York Stock Exchange under the ticker symbol “WBX”.
The Kensington team, made up of former auto industry and investment banking executives, previously went public with electric vehicle battery maker QuantumScape Corp. in a high-profile SPAC (Special Purpose Acquisition Company) transaction in November 2020. Volkswagen AG is one of the backers of QuantumScape’s research on the next generation vehicle batteries.
A SPAC, or blank check company, is a front company looking for a merger partner to bring to the public market.
PSPC transactions can usually get a company to go public faster than through a traditional initial public offering.
Justin Mirro, chief executive officer of Kensington, said he bought an electric Mustang Mach-E in March and evaluated a dozen charging stations at his Great Neck home before making the deal with Wallbox.
“Wallbox is the only company in the world that focuses on home and business,” he said, and plans to build a manufacturing facility in the United States funded in part by the $ 330 million PSPC deal. dollars.
Wallbox plans to provide a growing market for both domestic and public charging stations, but faces competition from competitors such as ChargePoint Inc., Blink Charging Co. and EVgo Services, which have been made public as part of a PSPC agreement earlier this month.
“Mass market adoption of electric vehicles is here, and it requires a significant expansion of charging infrastructure, starting at home,” said Enric Asuncion, CEO of Wallbox, in a statement.
Mitchell O. Goldberg, president of ClientFirst Strategy Inc., a Melville investment firm, warned that many PSPC transactions should be reserved for “the most aggressive part of their portfolio, if at all.”
One problem, he said, is that a wave of PSPC funding is chasing a limited number of private companies with the most promises.
“There is so much money chasing deals,” he said.