Mining a blank check: Electrum Special Acquisition prices upsized IPO at $10

Electrum Special Acquisition, a blank check company focused on acquiring companies in the metals and mining industry, raised $175 million by offering 17.5 million units at $10. The SPAC originally planned to raise $150 million. It now commands a market cap of $213 million, or 13% more than previously anticipated.

Each unit consists of one ordinary share and one warrant, and warrants entitle the holder to purchase one-half of one ordinary share at a price of $5.75 per half share. On the 52nd day following the offering, the common shares and the warrants should begin trading separately under the tickers ELEC and ELECW, respectively.

The company is led by Thomas Kaplan, a natural resources investor and Chairman of The Electrum Group. Electrum agreed to purchase 12,450,000 warrants privately at $0.50 per warrant, investing $6.2 million.

Electrum Special Acquisition is listed on the NASDAQ under the symbol ELECU. Electrum Special Acquisition initially filed confidentially on n/a. Cantor Fitzgerald acted as a lead manager on the deal.