Nabors Energy Transition Corp (NETC) has completed its upsized Initial Public Offering by selling 27,600,000 units at $10 apiece.
The SPAC or blank check company intends to acquire a company that is involved in energy transition such as alternative energy, energy storage, emissions reduction and carbon capture.
The sponsor of the SPAC is a company co-owned by Nabors Industries, a global leader in land-based drilling rigs and Tony Petrello, the current Chairman and CEO of Nabors.
In fact, all the management team of the SPAC are employed by Nabors including William Restrepo (CFO), Guillermo Sierra (VP – Energy Transition) and Siggi Meissner (President of Engineering and Technology).
The management team will not be paid a salary by the SPAC until it closes on a transaction. However, to me, it appears that there is plenty of scope for conflicts of interest. In the prospectus, NETC states that ‘potential conflicts with Nabors are naturally mitigated by the differing nature of the investments that Nabors would consider more suitable’.
In August, Nabors issued a press release that ‘it continues investment in energy transition with Quaise Inc’. It provided $12 million in financing to Quiase, a company developing millimeter wave drilling technology to access deep geothermal energy. That technology appears to be within the remit of the SPAC, even if the size isn’t.
Late last week, two more SPACs or blank check companies went public via an Initial Public Offering (IPO).
GoGreen Investments upsized its IPO and raised $240 million. The company is based in downtown Houston and is seeking companies in the clean/renewal energy space.
The company is led by CEO John Dowd, who is based in Massachusetts. He spent 14 years as a portfolio manager of the energy and natural resources sector funds of Fidelity Research and Management.
The CFO is Michael Sedoy, a former portfolio manager at various hedge funds on the east coast. He worked alongside Mr. Dowd, for a short period, at Sanford Berstein in New York
Newhold Investment II raised $175 million. The company is targeting businesses involved in advanced robotics, the Internet of Things, Software as a service with machine learning or new energy technologies.
The company is led by Kevin Charlton, who has taken a number of SPACs public in recent years. He has also worked for McKinsey, NASA and JP Morgan in his career.
One of the SPACs taken public was Newhold I which raised $150 million in July 2020 and took Boston-based Evolv Technology public in July 2021 in a deal that valued the business at $1.25 billion. Evolve is a leader in AI touchless security screening.
A third Houston-based SPAC, SportsMap Tech Acquisition went public earlier in the week.