At the SPAC of Dawn

Good morning! Watch this space moving forward as a roundup of evening filings as well as news nuggets to nibble on beside your morning coffee.

With yet another high-profile regular-way IPO breaking price on its debut in the form of Birkenstock (NYSE:BIRK), there is still a palpable chill in the air around new issuance despite other strong signs in the market.

The previous three IPOs Klayviyo (NYSE:KVYO), Davis (NASDAQ:DTCK) and Instacart (NASDAQ:CART) all last closed above their offering price, but Birkenstock’s -12.6% drop on day one does provide a sour note.

SPACs themselves have now consistently logged positive day-one performances in their own IPOs after nearly two full years in the negative. But, of course, performance following de-SPAC is another story.

With new uncertainty in the Middle East, the market appears to have priced in things being bad there, according to Marco Associates Chairman and CEO Nouriel Roubini, but are discounting the possibility of it getting a sharp side worse.

Nonetheless, the events have provided a new source of gloom for overall business sentiment that may not jive well with sandals in October.

News and Rumors

• Reuters: VinFast Auto (NASDAQ:VFS), which combined with Black Spade in August, announced its intention to purchase a 99.8% stake in battery producer VinES from its founder, Pham Nhat Vuong, to enhance its integration within the production value chain and strengthen its competitive edge.
• Barrons: Polestar, which completed its merger with Gores Guggenheim in 2022, disclosed its intent to raise $1 billion in a share offering, sending its shares down approximately -2.4%.
• Inside Asian Gaming: Okada Manila, which has been plagued with internal drama and a messy breakup with 26 Capital, nonetheless posted 9% revenue growth and 15.5% EBITDA growth in the third quarter of 2023.

Subscription Agreements

• Perception Capital Corp. II (NASDAQ:PCCT) has signed on to a PIPE agreement with Dr. Jörg Mosolf, who has agreed to individually purchase 50,000 shares in the SPAC’s target Spectaire at $10 per share upfront and $3 million-worth more over the two years following close.
• Digital World Acquisition Corp. (NASDAQ:DWAC) has continued to renegotiate its PIPE as a part of deal amendments the SPAC announced with Trump Media & Technology Group in August. Commitments to the original $1 billion PIPE have now whittled down to $533 million, which Digital World is spinning as a positive in removing a hindrance to the combination being concluded swiftly.