Shares of a new quantum computing stock jumped 14% in its first day of trading.
Infleqtion (NASDAQ: INFQ) didn’t pursue a conventional Initial Public Offering. Instead, the company went public by merging with a black check company.
Infleqtion was founded in 2007 at the University of Colorado. The company is developing quantum computers based on neutral atoms. They recently landed a $20 million contract with NASA to develop a quantum gravity sensor for space.
Infleqtion completed a merger with a Special Purpose Acquisition Company (SPAC) called Churchill Capital Corp X. The transaction means that Infleqtion is now a publicly traded company on the NASDAQ.
Churchill shareholders voted in favor of the deal – providing $550 million in capital for Infleqtion. Additionally, institutional investors funded a $125 million PIPE.
This resulted in a total combined capital infusion of $675 million.
The transaction was completed at a price of $10 per share. The merger valued Infleqtion at $1.8 billion based upon that share price.
Shares of INFQ were trading at $14 on Wednesday February 17th – a 40% premium to the go public price. The total market value is now around $3.5 billion.
Other quantum computing stocks have also chosen to go public via SPAC mergers. And the performance has been healthy.
· IonQ: +233%
· D-Wave Quantum: +84%
· Rigetti Computing: +56%
Another quantum computing firm called Xanadu (private) announced plans to go public via a SPAC named Crane Harbor Acquisition (NYSE: CHAC). That deal was announced in November.
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Ian Wyatt