SPAC Momentum? 3 New Monday Deals
Three Monday morning SPAC deals (HCIC, STPC, LIVK) carry over Friday s quantity-based momentum, but will investors be excited and deliver any deal pops?
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Three SPAC deals kick this morning off carrying over momentum from Friday s 3 deals. Friday s deals were mixed with
LifeSci Acquisition II Corp (LSAQ) having the most positive reaction from investors and jumping 6.6% on their announced deal with
ACON 52 s (STWO) deal with ESS gave a small boost, but it still ended the day 10 cents off of NAV at $9.90.
So, while Friday gave the feel of momentum with more quantity, investors didn t get behind the deals fully and so maybe the quality wasn t there to inspire. With another three deals today the quantity will again provide a feel of momentum, but how investors react will be the real driver.
IT Firm AgileThought Agrees to Deal With Mexico-Focused SPAC
Crystal Tse and Esha Dey, Bloomberg News
(Bloomberg) Information technology services company AgileThought Inc. has reached a deal to go public through a merger with a blank-check company focused on finding a Mexico-related target.
AgileThought, combined with the special purpose acquisition company, LIV Capital Acquisition Corp., will have a market value of about $491 million after the deal, according to a Monday statement. The transaction includes a $43 million private placement.
Irving, Texas-based AgileThought is backed by Nexxus Capital, one of Mexicoâs biggest private equity firms, as well as Credit Suisse Asset Management Mexico, according to data provider PitchBook.
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.
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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
SPACs Could Use Some Good News
The SPAC market s correction is starting to feel very painful for those that bought during peak SPAC. The next deals and de-SPACs will be watched closely.
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Apr 21, 2021
Tuesday was a painful day for the whole market, but SPAC investors were hit especially hard as there seemed nowhere to hide. 20 SPACs were down over 3%, RICE, THCB, STPK, RSVA, NGA, FSRV, CCIV, and STIC were all down over over 5.5%, and
there are now 244 pre-deal SPACs trading under $10.
The average pre-deal SPAC is now trading at $9.91 which means that there is a lot of opportunity for the yield + optionality play. However, increasingly investors are hesitant to jump in given the feeling that the upside is more limited as deals aren t popping as they used to and both the post deal announcement and post de-SPAC periods are seeing the air let out of the price balloon quickly.
Former Warner Music boss Edgar Bronfman Jr backs $300m SPAC cityam.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cityam.com Daily Mail and Mail on Sunday newspapers.