At the SPAC of Dawn
Morning SPAC News Roundup-readers have spoken! On the eve of the Fed’s press conference, we asked SPACInsider subscribers in this space to predict the number of SPAC IPOs in 2024.
As a baseline, 2023 saw 31 SPAC IPOs, there were 86 in 2022 and one has already priced in 2024 – JVSPAC (NASDAQ:JVSAU). So, the question is in some ways, “will SPAC IPO volume increase, decrease or stay roughly the same.”
SPACInsider‘s subscriber base is primarily made up of the institutional dealmakers and investors around SPAC transactions. So, although 30 responses is a relatively small sample size, a large majority of that clued-in group of respondents believe the 2024 environment will be the same or better for SPACs.
Nearly 76.7% of respondents predicted there would be more than 25 IPOs this year, and 16.7% predicted 50+. During SPACInsider‘s webinar breaking down the SEC’s new SPAC rules, Doug Ellenoff, a partner at Ellenoff Grossman & Schole, placed his chips in the 50+ camp, predicting double 2023’s output, or 62.
But, 23.3% of respondents in the poll predicted the decrease in SPAC activity to continue with less than 25 IPOs this calendar year. Sentiments may change as the market gets further away from the SEC rule drop and closer to a Fed rate cut, but for now the general consensus is for a steady course.
News and Rumors
- PR: Estrella Immunopharma (NASDAQ:ESLA) will begin a share repurchase program for up to $1 million in stock. Estrella combined with TradeUp in September 2023.
- Bloomberg Law: The lawsuit over 26 Capital‘s failed combination with Okada Manila just got bigger as a Delaware judge allowed Zama Capital Master Fund to join. Zama is to be aligned with the branch of the suit accusing an affiliate of Japan’s Universal Entertainment of unduly canceling the deal and interfering in local legal disputes in the Philippines.
- PR: Solar power company Alternus Energy (NASDAQ:ALCE) announced in an 8-K filing that it has repaid €59.1 million (about $64.1 million) in bonds after divesting certain assets in Italy and Poland. Alternus combined with Clean Earth in December 2023.
AST SpaceMobile (NASDAQ:ASTS) has been on +68% a tear off of its double-barreled announcement after hours yesterday that it signed a six-year commercial partnership with telecom AT&T (NYSE:T) and had beaten analyst expectations with its first quarter earnings. It has, in fact, been the best performer on the US markets throughout the afternoon outside of...
At the SPAC of Dawn Chinese auto conglomerate Geely (HK:0175) has occupied a not insignificant portion of recent SPAC dealflow as it has turned to the vehicles to spin off a series of subsidiaries. But, this week, it veered back to the traditional IPO path. The early returns on its move to bring EV brand...
Global Technology I (NASDAQ:GTAC) has entered into a definitive agreement to combine with art marketplace Tyfon at an enterprise value of $434 million, or 12.7x its $34 million 2023 EBITDA. Suzhou, China-based Tyfon operates as a dealer of Chinese contemporary art, selling pieces online and through traditional exhibition methods. The combined company is expected to...
Hudson I (NASDAQ:HUDA) has signed a letter agreement to combine with EV maker Aiways Europe at an equity value of $400 million. Aiways is headquartered in Shanghai and focused on developing a line of EV SUVs for the European and Asian markets. The combined company is expected to trade on the Nasdaq once the deal...
At the SPAC of Dawn SPACs are showing a continued resurgence in activity this morning as two new business combinations have been announced since the market close yesterday. The return of meme trader Roaring Kitty appears to have also injected fresh adrenaline into the retail market. Alongside pops with the usual meme stocks, shareholders in...