Transportation solutions provider Giga Energy Inc is going public through a merger with the blank-cheque company Yunhong International in a deal valued at up to $7.35 billion, the companies said on Monday.

Giga Energy said it had also secured nearly $308 million from private investor Harvest Tech Investment Management (UK) Co Ltd.

Formerly known as Ares Motor Works, Giga Energy aims to accelerate the transition of commercial and industrial vehicles to zero emissions and plans to be headquartered in Hangzhou, China.

The multi-billion-dollar deal is another mega-merger that marks a rebound in activity in the blank-cheque space, after a lull due to increased regulatory scrutiny and saturated investor appetite.

Blank-cheque companies or special purpose acquisition companies (SPACs) use capital from their IPOs to buy private firms, taking them public in the process.

Ginkgo Bioworks announced last week it would merge with a SPAC backed by Harry Sloan in a $17.5 billion deal. SoftBank Group Corp-backed mortgage startup Better HoldCo also announced a $7.7 billion blank-check deal last week.

Yunhong International went public in a $60 million IPO in February last year.

ARC Group Limited was the financial adviser to Giga Energy for the merger deal.

Reuters