SPACs were down on Monday in a quiet news day. With CLOV short squeeze going, Chamath is back to promoting his SPACs and FinTwit is less than welcoming.
Altimeter Growth Corp struck the largest SPAC merger ever agreeing to take Grab public in a $40B deal. Elsewhere the SEC continued to show its focus on SPACs and short sellers begin to emerge.
It may not feel like it, but the SPAC market may be on track to become healthier than ever. It's yield + optionality for the win. But, be careful as the field hasn't cleared yet and short sellers will make life hard for the SPACs and investors who buy into overly hyped financials and technology.
DEH and CHFW drummed up little investor enthusiasm for their SPAC merger announcements. SPAC IPOs remain parked and SPACs generally traded lower on the day. QS sold off on short seller report.
Two healthcare-related SPAC deals (DEH and CHFW) announced this morning for over $1B in total transaction value. Both Vicarious Surgical, a surgical robotics company backed by BDX, and Surrozen, a biotech, are pre-revenue.
It may start to feel "boring" for investors, but the SPAC market is getting healthy and that continues to provide opportunities for patient yield + optionality plays. BCTG had a good deal pop of almost 8%. VIH / Bakkt took a big hit (-12%) following the Coinbase IPO.
In SPAC land, another day for no new S-1s or IPOs. The market was clearly focused on the Crypto milestone Coinbase listing. It begs the question, will SPACs get into crypto?
SPAC bargain hunting is becoming harder as the SPAC market stabilizes on the back of slowing S-1s and IPOs (in some part due to SEC) so investors will be looking at SPACs already in the market that could pop on a deal or great execution news.
Altimeter Growth Corp and Grab set the record for the largest SPAC merger agreement at ~$40B equity value. Elsewhere, crickets, with no new S-1s or IPOs -- it's more than just the SEC latest announcement.