KKR Enters SPAC Frenzy With Flat Debut After $1.2 Billion IPO

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The first special purpose acquisition company from private-equity giant KKR & Co. Inc. opened flat in its debut session on Wednesday.

KKR Acquisition Holdings I Corp. raised $1.2 billion in an upsized initial public offering that priced Tuesday after the market closed. The vehicle will now search for acquisition targets in the consumer and retail industries, its filing says. The search will be led by Chief Executive Officer Glenn Murphy, chairman at Lululemon Athletica Inc.

The listing arrives amid a record wave of issuance by SPACs, but performance has been muted in the aftermarket. Blank-check vehicles that went public this year are trading just 1.7% above their IPO price on average, according to data compiled by Bloomberg, compared to a 28% return by traditional listings.

Read more: SPAC Shine is Wearing Off, Judging By Market Debuts

Citigroup Inc. is the sole bank underwriting the IPO. The company is trading on the New York Stock Exchange under the symbol KAHC/U.

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