SHLL - This SPAC Is Taking Electric-Truck Maker Hyliion Public
In June 2020, Hyliion Inc. announced it would become a publicly traded company through the process of merging with Tortoise Acquisition Corp. (NYSE: SHLL), a special purpose acquisition company (SPAC). Since publicly announcing the merger on June 19, shares of Tortoise Acquisition have jumped more than 20% as investors expressed excitement regarding the transformational product Hyliion has to offer.
A typical IPO process can be a daunting and exhausting experience for companies. IPOs can take months, if not years, of working with underwriters and auditors. Also, companies have to market their public offerings to potential investors during IPO roadshows.
Hyliion is going public through a slightly different process known as a SPAC IPO. SPACs, also known as blank-check companies, are publicly traded shell companies. By merging with Tortoise Acquisition's SPAC, Hyliion is effectively going public. Going public with SPACs has risen in popularity because the process is quicker than a traditional IPO.