In the first quarter of 2016, two energy-focused, special-purpose acquisition companies (SPACs) made their Nasdaq market debuts, including 2016’s largest U.S. initial public offering (IPO) to date.
On February 29, 2016, Silver Run Acquisition Corp. (NASDAQ: SRAQU) raised $500 million in its IPO of units priced at $10 per unit. Each unit consisted of one share of Class A common stock and one-third of one warrant. Silver Run is sponsored by Mark Papa, former CEO of EOG Resources, Inc., and seeks “to identify, acquire and operate a business in the energy industry that may provide opportunities for attractive risk-adjusted returns” within 24 months of the IPO.
It was followed in March by KLR Energy Acquisition Corp. (NASDAQ: KLREU), which ultimately raised approximately $85.1 million in its IPO of units priced at $10 per unit. Each unit consisted of one share of Class A common stock and one warrant. KLR is sponsored by Gary Hanna, former CEO of EPL Oil & Gas Inc., and seeks to consummate an acquisition within 18 months of its IPO, with a “focus on the sector that complements [its] management team’s expertise in the exploration, exploitation, operation and development of crude oil and natural gas wells and related infrastructure, and to capitalize on the ability of [its] management team to source, screen, evaluate, negotiate, structure, close and manage acquisitions of attractive assets or businesses in the U.S.”
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