This morning, Ascendant Digital Acquisition Corp. and Property Solutions Acquisition Corp. filed their S-1s to IPO, for $300 million and $200 million respectively. Not too long ago, two SPAC IPOs in one morning would seem like a flurry of activity. Now, this is a regular occurrence. In fact, a total of eight SPACs have filed an IPO since last Friday, June 26, 2020, for total potential proceeds of $1.9 billion. The average size of these SPACs are $237.5 million.
We are seeing high volume of S-1 filings for different offerings, but also a push towards bigger deals from sponsors. The average deal size was $230.5 million and year-to-date it is $320.6 million, and expected to increase. Larger offerings like Tontine, the $3 billion SPAC from Bill Ackman and GS Acquisition Holdings Corp. II, Goldman’s $700 million SPAC, are pushing the average deal size skyward.
For perspective, 2019 was a record year for SPAC activity in both gross proceeds from IPOs and IPO count. 2019 had 59 total IPOs and gross proceeds of $13.6 billion. This last week we’ve had ~14% of the IPO activity of full year 2019. The pace has been frantic and even if this week is an outlier, 2020 should still be another record year for SPACs. There is a real potential to reach or even exceed 100 SPAC IPOs priced by the end of the year.
SPAC IPO filings since Friday, June 26, 2020:
| SPAC | Assumed IPO Proceeds |
|---|---|
| Deerfield Healthcare Technology Acquisitions Corp. | $125 |
| Ascendent Digital Acquisition Corp. | $300 |
| Property Solutions Acquisition Corp. | $200 |
| GO Acquisition Corp. | $500 |
| Malacca Straits Acquisition Co. Ltd. | $125 |
| HPX Corp. | $200 |
| D8 Holdings Corp. | $250 |
| dMY Technology Group, Inc. II | $200 |
| Total | $1,900 |
| Average | $237.5 |
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC Liquidations: NightDragon, VectoIQ II, and Fortistar Sustainable Solutions Corp. Night Dragon Acquisition Corp. Will Redeem Its Public Shares and Will Not Consummate an Initial Business Combination NightDragon Acquisition Corp. (NASDAQ: NDAC) anticipates that the last trading day...
Lakeshore Acquisition I Corp. (NASDAQ:LAAA) disclosed this afternoon that its shareholders have approved its business combination with medical device company ProSomnus during a special meeting held earlier today. Approximately 92.4% of the votes cast at the meeting on the business combination proposal, representing approximately 80.5% of Lakeshore’s outstanding shares, voted to approve the deal. The SPAC disclosed...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Embark director Elaine Chao and others sued over SPAC merger, Alvotech switches CEO and takes COO from Teva, and Uber Freight and Aurora expand pilot Embark Director Elaine Chao, Others Sued Over SPAC...
SPACInsider contributors Anthony Sozzi and Sam Beattie this week compiled their three favorite potential SPAC targets among potential targets in the security industry. We look at why they are compelling and why each could be a fit for a blank-check merger. Security is on the market’s mind and is expected to grow at a CAGR...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC Liquidations: Atlas Crest Investment II and One Equity Partners Open Water I Atlas Crest Investment Corp. II to Liquidate Trust Atlas Crest II’s (NYSE:ACII) board and shareholders have agreed to establish today, December 1, 2022,...