SPACs had a rough day Friday, at least from a narrative standpoint, with a few high-profile blows heading into the weekend. It's becoming increasingly obvious that for deals not just to perform well, but actually survive, valuations and/or sponsor economics will have to come back down to earth. Keep an eye out for the continuing evolution of market structure.
Heading into the last couple weeks of summer, it's hard to see a near term catalyst that will immediately right the ship. With just a single SPAC IPO last week it's likely that the broader capital markets will remain closed. That being said, however, there have been a slew of S-1/As for SPACs gearing up to price, many of which are 1) overfunding trusts by as much as 20-25c and 2) surrendering founder shares to anchor investors.
Even with several over-funded trusts, recent IPOs continue to underperform:
Aug 13 | $ 9.85 | APMI - AxonPrime Infrastructure Acquisition Corp
Aug 12 | $ 9.82 | AACI - Armada Acquisition Corp. I
Aug 12 | $ 9.79 | JAQC - Jupiter Acquisition Corporation
Aug 12 | $ 9.93 | CENQ - CENAQ Energy Corp.
Aug 12 | $ 10.07 | KCGI - Kensington Capital Acquisition Corp. V
Aug 11 | $ 9.91 | AFTR - AfterNext HealthTech Acquisition Corp.
Aug 11 | $ 9.98 | WQGA - World Quantum Growth Acquisition Corp
Aug 11 | $ 10.05 | OXAC - Oxbridge Acquisition Corp.
Aug 10 | $ 10.06 | CNTQ - Chardan NexTech Acquisition 2 Corp.
Aug 10 | $ 9.98 | TPBA - TPB Acquisition Corporation I
Aug 10 | $ 10.03 | PONO - PONO Capital Corp
Virgin Orbit and NextGen Acquisition Corp. II to Merge
Sir Richard Branson strikes another SPAC deal, this time agreeing for his Virgin Orbit, a responsive launch and space solutions company, to go public at a $3.2B valuation. The deal financing includes a $100M PIPE from investors including Boeing and AE Industries.
“The Virgin Orbit team has proven its ability to create new ideas, new approaches, and new capabilities. They are building on the incredible foundation of their rapid transition into successful commercial launch operations to find new ways to solve big problems that uplift our customers’ amazing ideas, again and again. I’m very excited we are taking Virgin Orbit public, with the support of our partners at NextGen and our other wonderful investors. It’s another milestone for empowering all of those working today to build space technology that will positively change the world.”
Virgin Orbit Founder, Sir Richard Branson
NGCA is trading up on the news pre-market to above NAV at $10.02 as of this writing. Branson's first foray into SPACs, Virgin Galactic (SPCE), was ahead of the recent SPAC boom and has largely been a winner +145% from its SPAC IPO.
In addition the Virgin Group and Branson are sponsors of 3 SPACs, one has de-SPAC'ed one looking for a deal, and one waiting to price.
Upcoming votes this week:
8 SPAC merger votes are, at least scheduled, to go this week. A handful are actually trading above $10, so the potential to avoid large redemptions.
Aug 20 | $ 10.47 | VACQ - Vector Acquisition Corp --> Rocket Lab
Aug 23 | $ 11.60 | FWAA - Fifth Wall Acquisition Corp. I --> SMARTRENT.COM, INC.
Aug 24 | $ 9.80 | LWAC - Locust Walk Acquisition Corp. --> EFFECTOR THERAPEUTICS, INC.
Aug 24 | $ 10.02 | AHAC - Alpha Healthcare Acquisition Corp --> Humacyte, Inc.
Aug 25 | $ 9.82 | SNPR - Tortoise Acquisition Corp II --> Volta Industries, Inc.
Aug 25 | $ 9.69 | GWAC - Good Works Acquisition Corp --> Cipher Mining Technologies Inc.
Aug 26 | $ 10.01 | DFNS - LGL Systems Acquisition Corp --> IronNet Cybersecurity, Inc.
Aug 27 | $ 9.98 | TWCT - TWC Tech Holdings II Corp --> Cellebrite
The current (only?) trade seems to be a yield one. Here are some of the biggest bargains out there.
-4.30% | SMIH - Summit Healthcare Acquisition Corp. (Pre-Deal)
-4.20% | GPAC - Global Partner Acquisition Corp II (Pre-Deal)
-4.00% | MSAC - Medicus Sciences Acquisition Corp. (Pre-Deal)
-4.00% | CLBR - Colombier Acquisition Corp. (Pre-Deal)
-4.00% | POND - Angel Pond Holdings Corp (Pre-Deal)
-4.00% | GLBL - Cartesian Growth Corporation (Pre-Deal)
-4.00% | WALD - Waldencast Acquisition Corp. (Pre-Deal)
-3.90% | KSIC - Kadem Sustainable Impact Corporation (Pre-Deal)
-3.90% | GGMC - Glenfarne Merger Corp. (Pre-Deal)
-3.90% | SPTK - SportsTek Acquisition Corp. (Pre-Deal)
-3.90% | PSAG - Property Solutions Acquisition Corp. II (Pre-Deal)
-3.90% | DILA - Dila Capital Acquisition Corp (Pre-Deal)
-3.85% | ACAH - Atlantic Coastal Acquisition Corp. (Pre-Deal)
-3.80% | SCAQ - Stratim Cloud Acquisition Corp. (Pre-Deal)
-3.80% | LHAA - Lerer Hippeau Acquisition Corp (Pre-Deal)
-3.80% | FSRX - FinServ Acquisition Corp. II (Pre-Deal)
-3.80% | AEAC - Authentic Equity Acquisition Corp. (Pre-Deal)
-3.80% | ARTA - Artisan Acquisition Corp. (Pre-Deal)
-3.80% | BGSX - Build Acquisition Corp. (Pre-Deal)
-3.80% | ADEX - ADIT EDTECH ACQUISITION CORP. (Pre-Deal)
-3.80% | IBER - Ibere Pharmaceuticals (Pre-Deal)
-3.80% | NXU - Novus Capital Corporation II (Pre-Deal)
-3.80% | MACA - Moringa Acquisition Corp (Pre-Deal)
-3.80% | TLGA - TLG Acquisition One Corp. (Pre-Deal)
-3.80% | HCNE - Jaws Hurricane Acquisition Corporation (Pre-Deal)
-3.80% | TUGC - TradeUP Global Corp (Pre-Deal)
-3.72% | DHCA - DHC Acquisition Corp (Pre-Deal)
-3.70% | EAC - Edify Acquisition Corp. (Pre-Deal)
-3.70% | FZT - FAST Acquisition Corp. II (Pre-Deal)
-3.70% | JOFF - JOFF Fintech Acquisition Corp (Pre-Deal)
-3.70% | ARRW - Arrowroot Acquisition Corp. (Pre-Deal)
More from Boardroom Alpha
More from Boardroom Alpha For ongoing tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
- SPAC Friday Morning Bloodbath
- SPAC Fire Sale
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- Guidance Slashing is Killing De-SPACs
- ESG SPAC Deal with ADS-TEC Energy Picked by EUSG
- DKNG Steals Spotlight, ASAX to Take HotelPlanner Public
- SPACs Eating Their Own: DKNG to Acquire GNOG
- SPAC IPOs are Getting Done at a High Price
- 2 SPAC Votes Today. Expect more Redemptions?
- FTAC Athena and Betsy Cohen Taking Pico Public + SPACs Stuck Below NAV
- All SPAC Analysis from Boardroom Alpha
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)