Another $230 Million in SPAC Gross Proceeds Expected to Trade Tomorrow
Both Proficient Alpha (PAACU) and GigCapital2 (GIX.U) are expected to price their IPOs tonight to kick off the summer season and close out May. However, it’s already been a very busy year for SPACs. In fact, it was only just last June that SPACs had seven IPOs price in one month for the first time since the Financial Crisis. Since then, SPACs have priced seven IPOs in the months of August and October of 2018 and in February and March of 2019. If both Proficient Alpha and Gig2 price this week, we can add May 2019 to that distinction as well.
However, will we see eight IPOs price in one month this summer to break the record? June is unlikely. There aren’t enough on file right now, but there’s always July. And don’t forget, while August is typically a slow month for the rest of the IPO market, SPACs don’t take vacations. Eight is on the table.
Regardless, we have two more IPOs to get through this week and there is a better than average chance that both price tonight. Proficient Alpha appears to be a lock (finally), whereas Gig2 is still a question mark. However, Gig2 has gone ahead and filed their 8-a12b and their CERT (which is a signal that pricing is imminent) and the buzz is that they’re going to try bring this one over the finish line tonight instead of Thursday.
As you can see below, both deals are roughly the same size. The only real structural differences are that Proficient Alpha is offering a Right and has a much shorter duration. Albeit, Proficient is technically 18 months with their two 3-month extensions since there are no shareholder votes (and chances to redeem) in order to extend. Additionally, Proficient is focusing on financial services in Asia/China, whereas Gig2 is focusing on technology, media, and telecommunications (TMT).
Based on structure, Proficient’s deal looks a little sweeter. Plus, there’s also the issue of Gig1 still needing to close their combination before the Gig team embarks on a new SPAC (which you can read about HERE). That sort of muddied the waters for Gig2, regardless of how impressive the Gig team is.
As a reminder, summary IPO terms for both SPACs are below.
Terms Tracker for the Week Ending March 24, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. While this week was relatively quiet on the filings front, we did see March’s second SPAC IPO price with Oak Woods Acquisition Corp’s $50 million...
Latest Non-Redemption Agreements: ExcelFin Acquisition Corp. ExcelFin Acquisition Corp. (XFIN) Adds Non-Redemption Agreement In connection with the special meeting of stockholders of ExcelFin Acquisition Corp. (NASDAQ:XFIN) to extend its completion deadline from April 25, 2023 to October 25, 2023, the company and its sponsor, ExcelFin SPAC LLC, entered into a non-redemption agreement with an unaffiliated third party....
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Latest SPAC News: Momentus SPAC backers accused of deliberately engineering a catastrophic deal Momentus SPAC Backers Accused of Hiding Disastrous Deal’s Flaws A Momentus Inc. (NASDAQ:MNTS) investor sued backers of its blank-check merger with a shell company,...
DiamondHead Holdings Corp. (NASDAQ:DHHC) announced in an 8-K this morning that its shareholders approved its combination with Great Southern Homes at a special meeting March 23. Only 109,426 shares were redeemed in the connection with the vote, but DiamondHead has seen about 87% redemptions in total across all previous votes, leaving it with about $43.9...
Graf Acquisition Corp. IV (NYSE:GFOR) announced that it has signed a non-binding letter of intent to combine with clinical-stage biopharma company NKGen. This announcement is not a pure teaser as Graf IV is not facing an imminent extension vote and currently has until May 25 on its clock. It does, however, signal something of a...