SPAC Weekly Wrap: Signs of Life in SPAC Land
The SPAC market has stabilized a bit as things almost got back to normal this week. Several M&A deals were announced with some (RICE, MUDS) performing quite well. Pre-IPO activity remained light though and two were downsized.
Author:
Apr 9, 2021
A bit of return to normalcy this week as it feels like the low point of the SPAC market is behind us. New issues actually traded up (unlike the tail end of March) and several deals were met with investor enthusiasm. Highlights include:
Rice Acquisition RICE soaring day-1 +52% on its announcement of Aria/Archaea
SPAC Market Continues Recovery & Biggest SPAC Discounts for Thursday
The SPAC market has come back to an equilibrium where pre-deal SPACs trade close to NAV, good deals get rewarded, post-announcement execution can drive big returns, and strong IPOs could see high demand and a little pop too.
Author:
Apr 8, 2021
SPAC investors should be pleased with how the SPAC market went from peak SPAC just a few months ago to operating efficiently. There is still more to get cleared out and any combination of bad deals, silly IPOs, or bad news could change the mood, but for now investors will have confidence in the way it is operating.
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How SPACs are changing the IPO game: Equity ownership of founders a big consideration
March 2, 2021 at 11:42 am
SPACs are hot right now, and one of the reasons is they can keep more equity in the hands of founders. (GeekWire Illustration / Canva Image, adrian825)
A few weeks ago, a longtime GeekWire reader sent a note expressing shock that Sana Biotechnology co-founder and CEO Steve Harr
only owned 4.9% of the company after the completion of the IPO.
Given that the Seattle biotechnology company was on the cusp of a blockbuster stock market debut and now is valued at more than $6 billion, I responded that 4.9% of $6 billion seemed pretty good to me. After all, having a small slice of a big pie is often financially better than a big piece of a small pie.
Genomics firms taking advantage of SPACs trend to go public faster Christie Rizk, Genomeweb
Print
Special-purpose acquisition companies (SPACs), once considered the province of scam artists and shady dealers, are the latest trend to hit the public markets and the scientific world as companies seek to go public more quickly and avoid some of the disadvantages of a traditional initial public offering of stock.
The trend has been pronounced in the life sciences genomic tools and diagnostics industries, where initial public offerings aren t as plentiful as some other markets, like biopharma. In February alone, four firms in the tools and molecular diagnostics industries announced that they ve decided to go public using the SPAC mechanism.