Surf Air secures $200m funding commitment from GEM

Surf Air Mobility Corp., a membership-based private plane operator, has secured a $200m funding commitment from Global Emerging Markets Group for when it goes public. The Los Angeles-based company plans to go public in coming months through either a merger with a special purpose acquisition company or a direct listing, CEO Sudhin Shahani said Thursday. An IPO is also on the table, he said. A SPAC, also known as a blank-check company, raises capital from outside investors in an IPO and then often raises more money in a private placement when a target company is acquired. Surf Air’s deal with GEM is unusual because the SPAC would typically take the lead role in raising any additional funds. Surf Air might benefit from a decision Wednesday by the US Securities and Exchange Commission that will make direct listings more attractive. Companies going public on the New York Stock Exchange will be able for the first time to raise capital in what’s being called a primary floor direct listing. Surf Air can tap the first $50m of the commitment from Global Emerging Markets Group on the first day its stock begins trading publicly, Shahani said. The investment from the Luxembourg-based firm can be drawn over three years after the debut, he said. The company offers scheduled flights on its fleet of turboprop aircraft among cities in California and Texas, as well as Las Vegas and Phoenix.<br/>