Electric aircraft company Vertical Aerospace plans to go public

Vertical Aerospace, a British electric aircraft maker, announced last Thursday that it intends to go public through a $ 2.2 billion SPAC deal with Broadstone Acquisition.

SPAC mergers, once the most popular method for private companies to go public, have recently seen their performance plummet. Pre-merger and post-merger after-sales service fell in market capitalization over the past few months. Yet Vertical Aerospace saw the process as an opportunity now that the frenzy surrounding blank check mergers has subsided somewhat.

[Read more: Yahoo U: What are SPACs?]

“I think there has been a big gap between the traditional IPO and a PSPC process, but… it looks like these two processes are converging,” Stephen Fitzpatrick, founder and CEO of Vertical, told Yahoo Finance Live on Friday. Aerospace.

The deal is unlikely to be finalized until the second half of 2021, although the company announced it this month. Aerospace companies Avolon, Virgin Atlantic and American Airlines (AAL) and others have already invested in Vertical Aerospace, totaling up to $ 4 billion.

“I think PSPC investors and the market in general are much more demanding now,” said Fitzpatrick. “We told our stories to investors and partners; we have hired some of the best aerospace engineers in the world.

Vertical aerospace

Electric vehicles: the future of commercial theft?

Aircraft manufacturers are facing increasing pressure from regulators to reduce greenhouse gas emissions, especially in Europe. Electric aircraft companies like Vertical Aerospace have started to emerge as a cleaner alternative, but not yet commercially.

Fitzpatrick highlighted the potential effectiveness of electric planes on short trips. A trip from downtown Los Angeles to LAX or from JFK International Airport to Manhattan would take just 12 minutes and cost around $ 40, he said. “We see that there is a huge demand for this urban air mobility all over the world,” he added. “I have no doubt that in five years you will see these vehicles flying over the biggest cities in the world.

Ihsaan Fanusie is a writer at Yahoo Finance. Follow him on Twitter @IFanusia.

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