A low-carbon focused acquisition vehicle has announced plans for a £175m float on the London Stock Exchange today as it looks to snap up a business driving the green energy transition.
The new special purpose acquisition company (SPAC), New Energy One Acquisition Corporation (NEOA), is backed by investment firm LiveStream and Italian energy business Eni International and is now looking to acquire a firm that is positioned to power the global shift to a low carbon economy.
Executive director Sanjay Mehta said he was “proud” to be launching the first SPAC focused on the energy transition.
“In order to achieve the net zero targets that have been set globally, and recommitted at COP26 in Glasgow, we need to supercharge decarbonisation of industrial processes, decarbonisation of fossil fuels and produce transition fuels – blue hydrogen, green hydrogen, green ammonia at commercial scale and price point,” he said.
“NEOA as a SPAC provides an innovative investment asset class with the capital and industry expertise to invest in leaders that are integral to accelerating the journey towards net zero commitments.”
Eni has committed to subscribing for at least 10 per cent of the firm’s share capital and 25 per cent of the sponsor capital, with the potential to subscribe to shares of up to 15 per cent up to a maximum of £41m.
NEOA’s plans to float will provide a boost to the London Stock Exchange which has lagged behind other markets on encouraging SPACs to come to market.
London was dealt a blow earlier this year when British tech advisory and investment firm GP Bullhound shunned the capital in favour of Amsterdam to list its SPAC.
Manish Madhvani, Co-founder and Managing Partner at GP Bullhound, told City A.M. that London need to overhaul listing rules to encourage firms to come to market.
“If we don’t do that in the UK, we will keep losing valuable businesses to the US – and along with it the investment, the intellectual capital and wider growth of the ecosystem. We need a change of mindset and get braver with backing high-growth businesses,” he said.