At the SPAC of Dawn
Today marks by far the busiest day in the SPAC market since the SEC dropped the new rules as it is set to host four extension votes, three completion votes and even has a potential new SPAC IPO pricing on the docket.
This flurry of activity could also help improve certain averages for SPACs overall. As noted in today’s analysis of January Corporate Events, SPACs closing in January did so on average 22.2 months after announcing their combinations. That came after monthly averages for closing deals hit 25.6 months and 27.9 in November and December 2023.
The three SPACs heading into completion votes today, however – Oxus (NASDAQ:OXUS), L Catterton Asia (NASDAQ:LCAA) and Chenghe (NASDAQ:CHEA) – announced their deals on average about 10.6 months ago.
This trio’s targets also have an average enterprise value of $1.9 billion, pushed up by L Catterton Asia’s $5.4 billion price tag for performance EV-maker Lotus Technology. This comes after the 98 SPAC deals that closed in 2023 had a median enterprise value of just $461 million and only one combination announced that year had an enterprise value above $900 million.
By mid-next week, the numbers are likely to tell the story that not only is the SPAC market alive and well in the wake of the rule change, but, in fact, business is picking up.
Deals and Funding
- Power & Digital Infrastructure II (NASDAQ:XPDB) has added a $5 million PIPE to its combination with sustainable air conditioning company Montana Technologies, which has also committed to invest $10 million into a new joint venture to market its technology in GEO Vernova systems on three continents.
News and Rumors
- PR: Public accounting firm Marcum has expanded its IPO and SPAC practice in Asia with the opening of a new 50-person MarcumAsia office in Hong Kong.
Liquidations and Reversals
- PepperLime Health Acquisition Corporation (NASDAQ:PEPL) had earlier announced its intention to liquidate but it is now considering other options and will provide an update in the coming days.
Scheduling Notes
- Arrowroot Acquisition Corp. (NASDAQ:ARRW) has postponed its morning extension vote to 4:30 pm ET this afternoon.
Shepherd Ave Capital Acquisition Corp. (Nasdaq: SPHAU) is the latest SPAC to file to IPO, making 24 new registration statements that have filed since June 1, 2024. So far, only two of those 24 have gone public, but it does indicate an active August. In SPACLand at least, August is never slow. As for Shepherd...
At the SPAC of Dawn SPACs have now priced 20 IPOs seven months into 2024 with an eye on beating 2023’s total of 31 IPOs. With a little more than 5 months left in the year, it’s expected that SPACs should at least match that number by only needing to price roughly two IPOs per...
DT Cloud Star announced the pricing of its $60 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “DTSQU”, Thursday, July 25, 2024. The new SPAC aims to combine with an established business with long-term financial visibility, but has not limited itself to a particular industry or sector....
Launch Two (NASDAQ:LPBBU) has filed for a $200 million IPO that shows how the market has shifted for new issuance since its sister SPAC Launch One (NASDAQ:LPAAU) filed just over a month ago. Both SPACs are underwritten by Cantor Fitzgerald and seeking nominally the same raise at IPO, but Launch Two is overfunding its trust...
FTAC Emerald (NASDAQ:EMLD) has entered into a definitive agreement to combine with crypto fintech firm Fold at an enterprise value of $381 million. Phoenix, Arizona-based Fold provides digital banking services backed by a treasury of Bitcoin that includes FDIC-secured checking accounts as well Bitcoin trading and awards. The combined company is expected to trade on...