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Another day, another electric vehicle company arriving on the public markets. This time, the new entrant is Arrival, hailing all the way from the United Kingdom. As investors prep for it to come public via a special purpose acquisition company, they likely have a lot of questions. How does Arrival stand out? And what else do you need to know about the Arrival SPAC merger?
To start, Arrival will complete a reverse merger with CIIG Merger Corporation(NASDAQ:CIIC). Once it closes the deal, it will come public on the Nasdaq Exchange. Clearly, investors are already excited. CIIC stock is up more than 30% this morning!
With all that excitement in mind, here are 13 things to know about the Arrival SPAC Merger.
- Arrival will trade on the Nasdaq Exchange under the ticker ARVL.
- Even before announcing its SPAC deal, Arrival was one of the most valuable startups in the U.K.
- Also prior to coming public, it received $110 million from Hyundai(OTCMKTS:HYMTF) and Kia.
- Another pre-SPAC backer is BlackRock (NYSE:BLK).
- After the deal, it will have a valuation of $5.4 billion.
- Part of that comes from $400 million it plans to raise through private investment in public equity.
- Importantly, Arrival will receive about $600 million in cash proceeds from the SPAC merger.
- Arrival is working to stand out in the electric vehicle market.
- It wants its EVs to have competitive prices that are lower than other electric options.
- The company is focusing on two product lines, electric vans and electric buses.
- These two lines should have four total products in market by 2023.
- Money from the Arrival SPAC merger will help the company build out its lineup and boost its production capacity.
- Also importantly, investors can expect the deal to close in early 2021.
The Arrival SPAC Merger Ushers In Hype
Investors already have so many publicly traded electric vehicle companies to choose from. What makes Arrival exciting? And why is the Arrival SPAC merger receiving so much attention? At least part of the answer to that question is simply that the stock market is hungry for anything electric. Arrival comes with a bigger reputation, and it has institutional backing. That means the deal could scratch an EV itch and also offer some legitimacy.
However, Arrival already has a lot going for it. Although its vehicles are not yet in production — the company is aiming to start at end of 2021 — it already has an impressive order backlog. According to Arrival, it has received $1.2 billion in orders. And even more excitingly, part of that backlog is an order from United Parcel Service(NYSE:UPS) for 10,000 electric vans.
One other thing for investors to note about the Arrival SPAC merger is that the company is really different from others in the market right now. Investors do have companies like Tesla (NASDAQ:TSLA) and Fisker (NYSE:FSR) that captivate the consumer vehicle space. Arrival is focusing on vans and buses. This means that one of its main competitors is Rivian.