Two Big SPAC Deals (SRNG, AURC) After Monday s Mess
Monday was a painful day for SPAC investors with 75% of pre-deal SPACs dropping farther and 3 deals actually dropping on the news. Will today s deals from SRNG and AURC turn the tide?
Author:
At the close yesterday the average pre-deal SPAC was at $9.87 even further from NAV than investors have seen in a long time. Even worse, the three morning deals all closed lower:
-
-
LIV Capital (LIVK) -0.1% to $9.99
Today s two deal announcements are mega deals and could potentially turn the tide, but given the market s overall state and SPACs still being clogged, it will take a lot.
LOKB, STWO, LSAQ Announce SPAC Deals
An unusually busy SPAC Friday with three deals and GAMC announcing full over-allotment exercised by underwriters. Will it be enough to change the narrative?
Author:
More on the deals here:
Could 3 Positively Received Deals Change the Narrative?
We ve been saying that it will take multiple positive events for the SPAC mood and overall narrative to change. Is it possible that a triple of deals on Friday will all be positively received and start to turn the narrative? GAMC announcing that their full over-allotment was exercised could also boost the narrative a bit.
That said, it will be a tough shift as yesterday the average pre-deal SPAC closed at $9.88, well off of NAV and almost 85% of SPACs with announced deals traded down.
SPACs Get Beat Up Again
SPACs are getting increasingly battered as IPOs are scarce, pre-deal SPACs fall consistently below NAV, and announced deals continue to weaken. EV SPACs got hammered as two deals closed.
Author:
Another rough day for SPACs as
the average price for a pre-deal SPAC is now down to $9.88. SPACs with announced deals fared even worse with
almost 85% trading down today.
This morning did see one M&A announcement (see below), but that brings the week s total to just two announced and neither impressed.
It s clear the pace will remain slow until peak deal - i.e. when the 420+ SPACs that are searching for targets and feeling the pressure - forces the hand of the SPACs. Those SPACs are trading at an
Will Honest s IPO Take More Shine Off SPACs?
Muted SPAC M&A pops could spark a shift back to the traditional, longer IPO process for private companies. Hoffman and Pincus file for 4th SPAC.
Author:
Are Traditional IPOs Back in Favor?
The SPAC boom was partly fueled by the myriad of advantages that private companies were given by choosing SPAC as their path to public markets, to name a few:
- a faster/far less arduous offering process
- ability to sell investors on
future projections
Following
The Honest Company (HNST) highly successful day-1 IPO, it s fair to ask if more companies will follow their patient lead in the traditional IPO process. They were famously an early unicorn and then, infamously, lost their unicorn status in a down financing round. Yet the company ultimately recovered, and now are close to profitability and have a $2B valuation after closing yesterday up +44%.