Alussa Energy Acquisition Corp. II IPO - What You Need to Know

Hey there! If you’re thinking about investing in this IPO, here’s the lowdown in plain English. No jargon, just the stuff that matters.

1. What does this company actually do?

Alussa Energy Acquisition Corp. II is a “blank check company” (officially called a SPAC). Think of it like a group of investors pooling money to buy a private business later. They haven’t chosen a specific company yet but are focused on clean energy or sustainability—like electric vehicles, renewable power, or green tech. Their goal is to find a promising company, merge with it, and take it public.

2. How do they make money, and are they growing?

Right now, they don’t make money—they’re just holding cash from investors. Their success depends entirely on finding a good company to merge with. If they succeed, your shares could rise in value. If they don’t find a target within ~2 years, they shut down and return the remaining money (minus fees). This is all about future potential, not current performance.

3. What will they do with the IPO money?

• Investors pay $10 per share, but $0.31 per share goes to fees upfront (underwriting and advisory costs). That leaves $9.69 per share in a savings account (a trust).
• Total trust amount: $250 million (or $287.5 million if extra shares sell out).
• If they merge with a company, another 3% fee ($7.5 million) goes to their advisor, Santander, after the deal.
• If no merger happens in 2 years, you get back the trust money ($9.69/share, not the full $10 you paid).

4. What are the main risks?

• Fees cut into your investment: You start with $10/share, but only $9.69 goes to work. After a merger, another $7.5M disappears.
• No guarantees: They might pick a bad company, overpay, or fail to close a deal.
• Time crunch: If they don’t merge in 2 years, the SPAC dissolves.
• Market swings: Even if they merge, the stock could drop if the market sours.
• Unknown target: You’re betting on a company that doesn’t exist yet.

5. How do they compare to competitors?

Other SPACs (like Churchill Capital) work the same way—they’re all hunting for deals. Alussa’s focus on clean energy is a hot area, but unlike companies like Tesla or NextEra Energy, this SPAC has no real business yet. It’s pure speculation.

6. Who’s running the company?

The team includes Kara Primrose (CEO) and Steven H. Smith (Chairman), who have backgrounds in energy investing and SPACs. They previously merged Alussa’s first SPAC with a lithium company. Experience helps, but past success doesn’t guarantee future wins.

7. Where will it trade, and under what symbol?

The company hasn’t announced the ticker symbol yet. It’ll likely trade on the NASDAQ or NYSE—keep an eye out for updates!

8. How many shares, and what’s the price?

They plan to sell 25 million shares at $10 each, with up to 28.75 million shares if demand is high. Remember: only $9.69 per share goes into the trust.

Bottom line: This is a bet on the management team’s ability to find a winner in clean energy. It’s risky, speculative, and fees take a bite upfront and after a merger. Only invest money you’re okay tying up (or potentially losing).

Before you decide:

• Ask yourself if you’re comfortable with the uncertainty of not knowing the target company.
• Consider whether you’d rather invest in established clean energy companies instead.
• Remember: SPACs often underperform the market long-term.

Got questions? Drop ’em below! 👇