Tech infrastructure SPAC Kernel Group files for a $250 million IPO

Kernel Group Holdings, a blank check company targeting technology infrastructure sectors, filed on Thursday with the SEC to raise up to $250 million in an initial public offering.

The San Francisco, CA-based company plans to raise $250 million by offering 25 million units at $10. Each unit will consist of one share of common stock and one-half of a warrant, exercisable at $11.50. At the proposed deal size, Kernel Group will command a market value of $313 million.

The company is led by CEO and Director Mark Gross, who previously served as CEO of Supervalu and Co-President of C&S. He is joined by CFO and Director Rakesh Tondon and COO and Director Brett Northart, the co-founders of Le Tote where they previously served as CEO and President, respectively. Kernel Group plans to identify, acquire, and manage a business in the Commerce Enablement, Supply Chain, Logistics, and related Technology Infrastructure sectors, focusing on those with aggregate enterprise values greater than $1 billion.

Kernel Group was founded in 2020 and plans to list on the Nasdaq under the symbol KRNLU. It filed confidentially on November 25, 2020. Citi is the sole bookrunner on the deal.