SPAC Wrap: Investors Should be Happy with a Merger-less Monday; Announced Deals Take a Hit

Merger-less Monday was a bit of a surprise today, but given SPACs with announced deals took a hit, that's probably a good thing. Look for activity to pick up as the week progresses though.
Author:
Updated:
Original:

Even given the otherwise sideways day in the markets (S&P up, DJIA down, Nasdaq 100 down), some investors will be a bit disappointed in the SPAC activity. No deals were announced, SPAC IPOs stayed on the sidelines, and we saw only two prospective new SPACs file S-1s. 

Those invested in SPACs with announced deals took a hit today though. The majority of units and common shares were down, with some down significantly (e.g. PSAC / Faraday; see full list below). Investors will need to be careful about deciding when to get in and out of SPACs once the deal is announced. While there have been some good post-deal pops on great execution (e.g. DMYD and MUDS w/ its NFT play announced today), entry point remains important as it is pretty common lately to see any announcement inflated prices deflate, at least some, in the days after.

Given the additional traction in the SPAC market and so many pre-deal SPACs floating around, it is somewhat surprising to have a merger-less Monday. If (more likely when) deals do come this week, we remain of the belief that the market is primed for a positive reaction and good deals will have a nice announcement pop. 

A few of the SPAC rumors that could turn into reality this week include:

  • Grab, the Singaporean app for everything, and Altimeter Growth (AGC). Which is being billed as potentially the largest ever SPAC M&A transaction
  • Soaring Eagle (SRNG) is exploring a $20bn+ deal with Ginkgo Bioworks
  • Bridgetown (BTWN) and Traveloka, the Indonesian travel co.
  • Yucaipa Acquisition Corp (YAC) and Signa Sports
  • Israel-based automotive chip company Valens Semiconductor Ltd. is rumored but no details on which SPAC is involved.

New S-1s

A couple new SPACs did file prelim S-1s today, marking over 260 by our count that are waiting to price. While the pace makes it feel boring for some investors, the SPAC market isn't yet ready for a surge in S-1s or IPOs, so this rate should make most investors happy.

OceanTech Acquisitions I (OTEC): $100M, 1/2 Warrant. Led by experienced yachter Joseph Adir. Focused on EV $250M-$1B companies in the yachting/superyachting industry. 

Lakeshore Acquisitions I (LAAA): $50M, 3/4 Warrant. Led by Bill Chen, focused on Financial Services.

Biggest SPAC Gainers

Mudrick (MUDS) was the big winner today, as it continues to do well on the back of its merger announcement with Topps and its just announced NFT play.

15.12% ~ $ 12.49 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
5.19% ~ $ 14.99 | VIH - VPC Impact Acquisition Holdings (Announced)
4.74% ~ $ 10.83 | GWAC - Good Works Acquisition Corp (Announced)
4.54% ~ $ 13.58 | BOWX - BowX Acquisition Corp (Announced)
3.82% ~ $ 10.33 | LGAC - LAZARD GROWTH ACQUISITION CORP. I (Pre-Deal)
2.79% ~ $ 13.63 | JIH - Juniper Industrial Holdings, Inc. (Announced)
2.10% ~ $ 10.23 | PIPP - Pine Island Acquisition Corp (Pre-Deal)
1.97% ~ $ 10.05 | PRPC - CC Neuberger Principal Holdings III (Pre-Deal)
1.87% ~ $ 10.90 | SPFR - Jaws Spitfire Acquisition Corporation (Announced)
1.81% ~ $ 10.14 | CHFW - Consonance-HFW Acquisition Corp (Pre-Deal) 

Biggest SPAC Decliners
Property Solutions Acquisition (PSAC) declined the most, they have a pending deal with Faraday Future. 

-12.81% ~ $ 13.07 | PSAC - Property Solutions Acquisition Corp (Announced)
-8.90% ~ $ 15.76 | RICE - Rice Acquisition Corp. (Announced)
-6.99% ~ $ 16.11 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
-6.77% ~ $ 12.80 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-6.69% ~ $ 11.15 | SRAC - Stable Road Acquisition Corp. (Announced)
-6.63% ~ $ 13.52 | FTCV - FinTech Acquisition Corp. V (Announced)
-6.34% ~ $ 11.08 | BTWN - Bridgetown Holdings Ltd (Pre-Deal)
-5.69% ~ $ 17.07 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-5.44% ~ $ 12.00 | ARYA - Arya Sciences Acquisition Corp III (Announced)
-5.40% ~ $ 11.56 | APXT - Apex Technology Acquisition Corporation (Announced)
-5.17% ~ $ 16.52 | NGA - NORTHERN GN ACQ (Announced)
-4.90% ~ $ 35.36 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-4.33% ~ $ 17.00 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
-4.29% ~ $ 12.71 | TDAC - Trident Acquisitions Corp (Announced)
-4.29% ~ $ 16.30 | ACTC - ArcLight Clean Transition Corp (Announced)
-4.09% ~ $ 22.03 | CCIV - Churchill Capital Corp IV (Announced)
-4.08% ~ $ 11.04 | IPOD - Social Capital Hedosophia Holdings Corp IV (Pre-Deal)
-4.07% ~ $ 11.07 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-3.73% ~ $ 18.31 | SSPK - Silver Spike Acquisition Corp. (Announced)
-3.28% ~ $ 30.12 | STPK - Star Peak Energy Transition Corp (Announced)

More from Boardroom Alpha

For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.