Electric vehicles (EVs) are already changing the ways we drive, but in the skies, things are also shifting toward a greener future. Surf Air Mobility is working to bring electrification to the air, reducing both costs and emissions in the process.
This company has carved out a niche for itself providing a flight experience for business and leisure travelers. Now, Surf Air is about to shake things up even more as it prepares to be one the year’s first direct listings. Slated to begin trading on the New York Stock Exchange today, Surf Air will trade as SRFM stock according to a statement released by the company.
Opting for a direct listing is somewhat unusual, as it allows companies to skip the initial public offering (IPO) process. However, direct listings are sometimes seen as a more efficient listing process and Surf Air Mobility is clearly part of that group. As InvestorPlace contributor Dana Blankenhorn reports:
“The direct listing for SRFM stock is for up to 18.8 million shares, priced between $5.93 and $11.86 per share, reflecting prices paid for Southern stock in private transactions earlier this year. The company hopes to raise about $200 million through the listing, near the high end of that range.”
What else should investors know about SRFM stock’s hot debut? Let’s take a closer look at Surf Air Mobility and what makes the company unique.
What to Know About Surf Air Mobility and SRFM Stock
- Bloomberg reports that SRFM stock has been issued a reference price of $20 per share for the listing.
- Surf Air Mobility had initially planed to go public via a special purpose acquisition company (SPAC) merger with Tuscan Holdings Corporation II.
- Subsidiaries of Surf Air Mobility include Surf Air and BlackBird Air. The company’s acquisition of Southern Airways played a pivotal role in its plans to go public.
- Surf Air has an impressive list of partners, including Palantir (NYSE:PLTR) and SkyWest Airlines (NASDAQ:SKYW). As Fast Company notes, however, some of its partnerships were contingent on SRFM stock trading by July 31. A direct listing represented a quick way to meet this deadline.
- The company is highly focused on regional air mobility (RAM), which could make regional travel more affordable and accessible if executed correctly.
- Consulting giant McKinsey & Company once named Surf Air Mobility in a report in which it assessed the potential for RAM to redefine the aviation industry.
- Renaissance Capital notes that, after combining with Southern Airways, Surf Air will have a reach that spans 44 cities and caters to more than 99,000 passengers. However, it describes the company as “highly unprofitable, with a going concern warning.”
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
