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SPAC Kensington Acquisition IV files for a $200 million IPO, targeting the auto industry

January 20, 2022

Kensington Capital Acquisition IV, a blank check company led by the founder of Kensington Capital targeting the auto industry, announced it would file for an IPO on Thursday.

The Westbury, NY-based company plans to raise $200 million by offering 20 million units at a price of $10. Unlike most SPACs, Kensington IV's units will contain two whole warrants, both of which are exercisable at $11.50; the Class 1 warrants will begin trading separately 52 days after the IPO, while the Class 2 warrants will not trade separately, and instead are subject to expiration if the shares are redeemed.

The company is led by CEO and Chairman Justin Mirro, the founder of automotive-focused investment firm Kensington Capital, where he currently serves as President. Mirro also has experience from General Motors, Toyota, and several investment banks. Mirro has led three previous SPACS: Kensington Capital I, which acquired QuantumScape (QS; +73% from IPO), Kensington Capital II, which acquired Wall Box Chargers (WBX; +28% from IPO), and Kensington Capital V (KCGI.U), which is still looking for a target.

Kensington Capital Acquisition IV was founded in 2021. It plans to list on the NYSE under the symbol KCAC.U. UBS Investment Bank and Stifel are the joint bookrunners on the deal.