IPOs

Riverstone's SPAC Decarbonization Plus Acquisition lowers deal size by 33% ahead of $200 million IPO

Decarbonization Plus Acquistion, a third blank check company formed by Riverstone targeting businesses advancing global decarbonization, lowered the proposed deal size for its upcoming IPO on Tuesday.

The Menlo Park, CA-based company now plans to raise $200 million by offering 20 million units at a price of $10. The company had previously filed to offer 30 million units at $10. Each unit now consists of one share of common stock and one-half of a warrant, exercisable at $11.50. Units previously contained one-third of a warrant. At the revised deal size, Decarbonization Plus Acquistion will raise -33% less in proceeds than previously anticipated.

The company is led by CEO and Director Erik Anderson, founder and CEO of investment firm WestRiver Group, and CFO and CAO Peter Haskopoulos, a Managing Director and CFO of Riverstone. Riverstone co-founders Pierre Lapeyre and David Leuschen will serve as Directors. The company plans to target businesses that may advance the objectives of global decarbonization, including those operating in the energy and agriculture, industrials, transportation, and commercial and residential sectors.

Riverstone's most recent SPAC, Silver Run Acquisition II, raised $900 million in March 2017 and completed its merger with Alta Mesa and Kingfisher Midstream in February 2018 to form Alta Mesa Resources (AMR). The new company filed for bankruptcy in September 2019 and was sold in April 2020 for $220 million. Riverstone's first SPAC, Silver Run Acquisition, went public in February 2016 and acquired Centennial Resource Development (CDEV; -94% from $10 offer price) in October 2016.

Decarbonization Plus Acquistion was founded in 2017 and plans to list on the Nasdaq under the symbol DCRBU. Citi and Credit Suisse are the joint bookrunners on the deal.

The article Riverstone's SPAC Decarbonization Plus Acquisition lowers deal size by 33% ahead of $200 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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