Friday's SPAC Opportunities: SPAC Stock Pops are Back; SEC Warns on SPACs; Bridgetown Rumor

It's been a good week for SPAC stocks with a strong IPO, a couple deal pops, and some good SPAC IPO pricings. What will Friday bring?

Author:
David Pogemiller
Publish date:
Apr 9, 2021

We've seen a few good deal pop's this week further suggesting the SPAC market has stabilized and continues to climb back from the bottom. Yesterday's Rice Acquisition (RICE) deal to take a combined Aria Energy and Archaea Energy public soared up 52%. And while the MUDS/Topps deal has given back some ground after the day 1 pop, it remains meaningfully up from pre-deal. The TWCT/True Wind deal with Cellebrite and Rotor Acquisition (ROT) didn't see the same

With the SPAC market trading as it is, pre-deal SPACs with strong sponsors that are trading around NAV could be good adds to a diversified basket.

Bridgetown Rumored to be In Advanced Talks

Bloomberg is reporting that Bridgetown Holdings (BTWN) is in advanced talks to bring Indonesia’s Traveloka public. Bridgetown is backed by Richard Li and Peter Thiel, closed at $12.11 yesterday and is up almost 4.5% this morning in pre-market.

SEC Looking at SPACs

Making the rounds in SPACland is a recent YouTube interview with Chamath Palihapitiya (the one time "SPAC King" with 14 SPACs/Pipes) where he suggests that SPACs can more fully capture the deal value than traditional IPOS because with the latter “you can’t show a [financial] forecast and you can’t talk about the future of how you want to do things — you’re just not allowed.”

“Because the SPAC is a merger of companies, you’re all of a sudden allowed to talk about the future,” Palihapitiya added. “When you do that, you have a better chance of being more fully valued.”

In a statement by John Coates, an acting director at the Securities and Exchange Commission, he worked hard to let sponsors, target companies, and investors that may not be the case.

“All involved in promoting, advising, processing and investing in SPACs should understand the limits on any alleged liability difference between SPACs and conventional IPOs,” Coates warned. “Simply put, any such asserted difference seems uncertain at best.”

SPAC IPO Pricings
A couple SPAC IPOs priced yesterday with one, ADF, downsized significantly.

TPGS - TPG Pace Solutions for $250mm with no warrants and a non-specific target

ADF - Aldel Financial for $100mm with 1/2 warrant. This was a big downsize from original $200mm plans

SPAC Stocks Trading at a Discount
-3.80% ~ $ 9.62 | GIGG - GigCapital4, Inc. (Pre-Deal)
-3.60% ~ $ 9.64 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-3.30% ~ $ 9.67 | TCAC - Tuatara Capital Acquisition Corporation (Pre-Deal)
-3.20% ~ $ 9.68 | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-3.10% ~ $ 9.69 | MIT - Mason Industrial Technology, Inc. (Pre-Deal)
-3.00% ~ $ 9.70 | DNZ - D and Z Media Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | ADEX - ADIT EDTECH ACQUISITION CORP. (Pre-Deal)
-3.00% ~ $ 9.70 | FORE - Foresight Acquisition Corp. (Pre-Deal)
-3.00% ~ $ 9.70 | CLAS - Class Acceleration Corp. (Pre-Deal)
-2.99% ~ $ 9.70 | BIOT - Biotech Acquisition Company (Pre-Deal)
-2.91% ~ $ 9.71 | ADRA - Adara Acquisition Corp. (Pre-Deal)
-2.90% ~ $ 9.71 | HCII - HUDSON EXECUTIVE INVESTMENT CORP. II (Pre-Deal)
-2.80% ~ $ 9.72 | CPTK - Crown PropTech Acquisitions (Pre-Deal)
-2.80% ~ $ 9.72 | EQHA - EQ Health Acquisition Corp (Pre-Deal)
-2.70% ~ $ 9.73 | KLAQ - KL Acquisition Corp (Pre-Deal)

Opportunities to Get in the Game with a SPACthlete
A few of the SPACs with prominent athletes are trading at levels that could be interesting for fans:

$ 9.97 | DISA - Disruptive Acquisition Corp I (Patrick Mahomes, Justin Verlander and more)
$ 9.98 | MACC - Mission Advancement Corp. (Colin Kaepernick)
$ 9.99 | SLAM - Slam Corp | Pre-Transaction (Alex Rodriguez)
$ 10.01 | FRXB - Forest Road Acquisition Corp. II (Shaq)
$ 10.15 | DUNE - Dune Acquisition Corporation (Steph Curry)