Electric car maker Fisker to go public through SPAC deal at $2.9 billion valuation

 Electric car maker Fisker will go public through a merger with a blank check company backed by private equity firm Apollo Global Management Inc at a valuation of $2.9 billion, the companies said on Monday.

Reuters reported last week that the special purpose acquisition company, Spartan Energy Acquisition Corp , was leading a bidding war among blank-check companies for Fisker.

Spartan's shares rose 19.4% in premarket trade.

The deal will provide Fisker with $1 billion in gross proceeds, including $500 million of funds from existing and new investors such as AllianceBernstein and BlackRock Inc .

The proceeds will be used to bring the company's first product, the Fisker Ocean, to production in late-2022.

Henrik Fisker, a one-time Aston-Martin designer, launched the eponymous Los Angeles-based company in 2016, and plans to begin selling the Fisker Ocean luxury electric SUV at a starting price of $37,500.

"Prototype vehicles are expected to start durability testing by the end of this year," Fisker said in a statement.

His previous automotive venture, Fisker Automotive, filed for bankruptcy in 2013 after burning through $1.4 billion in private investments and taxpayer-funded loans.

A SPAC uses proceeds from its IPO, together with borrowed funds, to acquire a company, typically within two years.

SPACs have been behind some of the most high-profile public listings of the last 12 months, including peer Nikola Corp , which went public last month, as investors place bets on which startup will be the next Tesla Inc .

Nikola shares are up more than 60% since their debut.