Kraken-Linked KRAKacquisition Completes $345M Nasdaq IPO

A Kraken-linked special purpose acquisition company named KRAKacquisition Corp closed its upsized initial public offering of $345 million on Friday. It also began trading on Nasdaq. 

The company announced that the size of the initial public offering had been increased. It followed additional share purchases by underwriters amid strong investor demand.

The trading symbol of the shares of KRAKacquisition Corp. is KRAQU. The shares were offered for sale at $10 each, and the company sold 34,500,000 shares. The underwriters of the shares also acquired 4,500,000 shares through an overallotment option.

Kraken-Backed KRAKacquisition Upsizes IPO

The company filed its registration statement earlier this month with the intention of IPOing 25 million shares. The completion of the enlarged share sale led to an increase in the size of the initial public offering. The special purpose acquisition company confirmed the adjustment after closing the offering.

The special purpose acquisition company noted that its structure enables the business combination in the future. The company noted that it has not had substantive discussions with potential targets and that its board of directors will consider opportunities in all industries. 

The special purpose acquisition company noted that its board of directors intends to target companies in the digital asset industry. The company noted in its SEC prospectus that its objective is to support digital asset businesses. It said it will also target firms working where DeFi and TradFi intersect. 

The prospectus outlined this focus as part of its investment plan. The areas of interest include payment networks, tokenization platforms, compliance solutions, and essential digital asset services.

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The filing points out the importance of infrastructure development in the industry. It mentioned that the company anticipates that digital asset companies will have access to more capital. The filing also mentioned that digital asset companies may contribute to the growth of financial technology usage.

Sponsor Group Supports Target Evaluation Process

KRAKacquisition Corp is sponsored by NCTK Sponsor LLC. The Delaware LLC is a joint venture between Kraken, Tribe Capital, and Natural Capital. The joint venture was formed to support the SPAC. The sponsor group will assist in the process of evaluating targets. 

The company plans to utilize its access and operational knowledge of the industry. The SEC filing mentioned that Kraken is not contractually required to aid the SPAC. The filing also mentioned that Kraken, as a sponsor partner, may assist in the process of evaluating targets. 

KRAQU shares have traded near the IPO price since the company began trading. The company’s shares have traded at about $10.12. This valuation is an increase of about 1.3% from the offering price. 

Kraken announced a filing to go public in November. The announcement followed an $800 million fundraising round. The fundraising round valued the company at $20 billion.

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