Quantum Computing Firm Pasqal Jumps 52% in Debut Via SPAC Merger

Pasqal Holding SA soared in its first day of trading after the quantum computing company went public in New York via a merger with a blank-check firm, outperforming other quantum companies that have recently debuted.

France-based Pasqal’s shares jumped 52% to $14.84 at 12:26 p.m. in New York on Friday following a merger with Bleichroeder Acquisition Corp. II, a special purpose acquisition company.

Pasqal had approximately $360 million of cash available at the closing of the transaction, according to a statement Thursday. More than 90% of the shares were redeemed, an earlier filing showed, meaning Pasqal missed out on most of the funds raised in the SPAC’s IPO.

So-called de-SPACs can be highly volatile if the vast majority of shares are redeemed, as anxious traders flip the smaller pool of stock available for trading. Over the years, the gains and selloffs have resembled gambling more than investing as speculators push stocks far above their fundamental values in hopes of pocketing a quick profit.

Founded in France in 2019 by five scientists, Pasqal is developing quantum computing systems designed for industries including oil and gas, financial services and advanced materials. Its customers include Saudi Arabian Oil Company, Credit Agricole SA and LG Electronics Inc., and it has an $80 million order backlog, according to the company.

Pasqal leverages neutral atom technology, which involves trapping individual atoms with lasers to use them as a quantum bit, or qubit. The company has 10 quantum processing units, seven of which are installed and three are in production, according to Pasqal.

Read More: Quantum Computing Is Finally Here. But What Is It?: Explainer

Pasqal is following in the footsteps of other quantum computing firms that have gone public in recent months. IQM went public via a SPAC listing on July 2, and the company’s American depositary receipts have since fallen 17% through Thursday’s close. Quantinuum Inc. went public through a traditional IPO on June 4, and its shares are down around 10% through Thursday.