Kraken’s SPAC KRAKacquisition Corp Closes $345M IPO, Joins Nasdaq

TLDR

• KRAKacquisition Corp completed an upsized $345 million IPO, surpassing its initial target of $250 million.
• The company’s units began trading on Nasdaq on January 28 under the ticker KRAQU.
• Each unit consists of one Class A ordinary share and one-quarter of a redeemable warrant.
• Kraken, along with Natural Capital and Tribe Capital, sponsors the blank-check company.
• The offering included 34.5 million units, with 4.5 million sold through the exercise of the underwriter’s overallotment option.

KRAKacquisition Corp, a special purpose acquisition company (SPAC) backed by Kraken, has raised $345 million through its upsized initial public offering (IPO). The offering, which was completed on January 28, marks the company’s debut on the Nasdaq Global Market under the ticker symbol KRAQU. The deal exceeded initial expectations, raising more than originally planned, as investor demand led to an upsized offering.

The IPO included 34.5 million units, each priced at $10, with 4.5 million units sold following the exercise of the underwriter’s overallotment option. Gross proceeds reached $345 million before fees and expenses, far surpassing the initial target of $250 million. Kraken, an affiliate of Natural Capital and Tribe Capital, sponsors the blank-check company, which intends to pursue a future merger or acquisition.

KRAKacquisition’s Nasdaq debut

KRAKacquisition Corp’s units began trading on January 28 under the ticker KRAQU. The offering comprised units, each consisting of one Class A ordinary share and one-quarter of a redeemable warrant. Once the units separate, the shares will trade under the symbol KRAQ, and the warrants will trade as KRAQW. Each full warrant is exercisable at $11.50 per share.

Santander US Capital Markets served as the sole underwriter for the offering. A registration statement for the IPO became effective on January 27. “The IPO was completed successfully, thanks to strong demand from investors,” said the company in a press release.

Kraken’s strategy with SPAC-backed listing

KRAKacquisition Corp is sponsored by an affiliate of Kraken, which aims to assess potential merger or acquisition targets over time. The structure of the SPAC allows the company to hold capital in trust while maintaining the flexibility to pursue future transactions. Kraken and its partners are keeping their options open while awaiting the right opportunity for a potential deal.

The decision to use a SPAC route reflects Kraken’s strategic approach, as the company has not yet identified a specific target.

The post Kraken’s SPAC KRAKacquisition Corp Closes $345M IPO, Joins Nasdaq appeared first on Blockonomi.