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.
At the SPAC of Dawn SPACs have scheduled eight extension votes ahead of what is frequently a busy Christmas week for the market, although none of these are set to complete a deal. There will also be plenty of economic indicator releases this week, but only manufacturing numbers slated for this morning. Meanwhile the market’s...
Terms Tracker for the Week Ending December 13, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. SPACs managed three more IPO pricings this week bringing the 2024 YTD count to 55 with $9.3 billion in total gross proceeds raised. However, December...
At the SPAC of Dawn As the sun sets on SEC Chair Gary Gensler’s term, so too is some of the conventional wisdom around SPACs that came to prominence immediately after the SPAC boom of 2020-2021. Aside from the fact that a large portion of the listed companies that emerged from that class are now...
Roman DBDR Acquisition Corp. II (NASDAQ:DRDBU) announced the pricing of its $200 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “DBDRU”, Thursday, December 12, 2024. The new SPAC intends to focus its initial search on companies in the cybersecurity, artificial intelligence or financial technology industries.. The Company’s...
Mountain Lake Acquisition Corp. (NASDAQ:MLACU) announced the pricing of its upsized $210 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “MLACU”, Friday, December 13, 2024. The new SPAC intends to combine with an established business of scale with a highly regarded management team without an initial focus...