SPAC ESM Acquisition prices $300 million IPO, targeting decarbonization resources

ESM Acquisition, a blank check company formed by The Energy & Minerals Group and former Xstrata CEO Mick Davis, raised $300 million by offering 30 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable at $11.50.

The company is led by Chairman John Raymond, co-founder and CEO of natural resources-focused private equity firm The Energy & Minerals Group, and CEO Sir Michael "Mick" Davis, the former co-founder of X2 Resources and former CEO of mining and materials company Xstrata, who currently serves as Chairman of Macsteel Group and a director of Coronado Global Resources.

The company plans to target businesses that may benefit from the global transition towards a low carbon economy, including the shift away from fossil fuels, the light-weighting and electrification of vehicles, and the reduction of carbon emissions from key industrial processes. These include companies in the mining and natural resources sectors that are critical in order to achieve de-carbonization, including cobalt, copper, graphite, lithium, manganese, nickel, palladium, platinum, rhodium, vanadium, rare earth elements, and/or other directly related raw materials.

ESM Acquisition plans to list on the NYSE under the symbol ESM.U. Credit Suisse acted as lead manager on the deal.