Surf Air confidentially files for direct listing after ending SPAC deal

(Reuters) -Electric aviation and regional air travel company Surf Air Mobility said on Wednesday it had confidentially filed for a direct listing in the United States after terminating its $1.42 billion merger deal with a blank check firm.

This comes as shares of several companies that listed through special purpose acquisition companies (SPAC), including Grab Holdings Ltd and BuzzFeed Inc, have slumped this year as economic conditions worsen.

The deal with SPAC Tuscan Holdings Corp II, which would have fetched Surf Air $467 million in cash proceeds, was called off mutually, the companies said.

A special purpose acquisition company (SPAC) is a listed company lacking an inherent business model, formed solely to take other companies public via mergers.

Los Angeles-based Surf Air had recently undertaken a series of partnerships, including one with Textron Inc on plans to use electrified aircraft, amid a push from the Biden administration to lower aviation emissions by 2030.

As opposed to a traditional initial public offering, no new shares are created in a direct listing. The process allows insiders to sell their shares instantly and without the support of traditional underwriters.

(Reporting by Anirban Chakroborti and Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)