Anticipated to Price IPO Tonight.
GigCapital3, Inc. (GIK.U), which had previously amended their IPO terms from an original 24 months with a 1/2 warrant, to 18 + 3 months with a 3/4 warrant, has now further revised their deal terms. Gig3 will now be a straight 18 months with a 3/4 warrant, but most importantly, Gig3 will be over-funding their trust and will now be $10.10 day-one.
This is the first time a SPAC has over-funded a trust at 101.0% since Hennessy Capital IV, which IPO’d back on February 28th of 2019. That’s over a year ago. However, I suspect it won’t be the last.
As a result of the over-funding, GigCapital3 will now be contributing $8,934,790 via their at-risk private placement purchase of units at $10.00. This is up from their original $7.5 million purchase of units, or an increase of $1,434,790. So as you can see, it’s expensive to over-fund, which is why teams are generally not to keen to do it.
Nonetheless, Gig3’s changes should garner considerably more interest from investors, so this deal is back on. Additionally, Gig3 is anticipated to price tonight for trading Thursday, along with Jaws Acquisition Corp. (JWS.U). Jaws, however, has not amended their terms and will be sticking with 24 months and a 1/3 warrant.
The next test will be to see how Gig3 trades tomorrow as a result of their term changes and it should trade above issue price, but it will be interesting to compare it to how Jaws does.
Revised summary of terms below: