SPAC Wrap: Altimeter Growth and Grab Mega-Merger Sets the Record

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.
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Generally positive day for SPAC stocks overall in congruence with the broader equity market that largely brushed off this morning's news of a JNJ vaccine pause. On the positive side, the biggest SPAC merger ever was announced. However the new issue market remains very light, no IPOs and no new S-1s. Of which a possible catalyst could be the backlog of paperwork the SECs new guidance is imposing (i.e. changing the accounting for warrants).

SPAC Mega-Merger

It's the largest SPAC merger of all time, with Altimeter Growth Corp (AGC) finally striking deal with Singapore's Grab at nearly a $40B equity value. AGC gained nearly 10% on the day, despite that it's traded up for nearly a month on the deal rumors. 

While Grab has ambitious revenue projections, they are growing extremely fast (96% CAGR last 3 years) and Altimeter, the SPAC sponsor, has agreed to a 3-year share lockup to match the length of financial projections that they've provided to investors.

Grab revenue projections. Source: Investor Deck

Grab revenue projections. Source: Investor Deck

With Grab/AGC out of the way there are several other rumored deals that could come soon:

  • 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.

Biggest SPAC Gainers

9.89% ~ $ 15.33 | AGC - ALTIMETER GROWTH CORP (Announced)
6.97% ~ $ 13.36 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
3.66% ~ $ 18.98 | SSPK - Silver Spike Acquisition Corp. (Announced)
2.35% ~ $ 10.90 | HOL - Holicity Inc (Announced)
2.10% ~ $ 11.18 | AHAC - Alpha Healthcare Acquisition Corp (Announced)
1.97% ~ $ 12.96 | TDAC - Trident Acquisitions Corp (Announced)
1.94% ~ $ 10.50 | HSAQ - Health Sciences Acquisitions Corporation 2 (Pre-Deal)
1.90% ~ $ 11.28 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
1.83% ~ $ 10.03 | KURI - Alkuri Global Acquisition Corp. (Pre-Deal)
1.82% ~ $ 11.21 | BCTG - BCTG Acquisition Corp. (Pre-Deal)

Biggest SPAC Losers

-10.23% ~ $ 27.04 | STPK - Star Peak Energy Transition Corp (Announced)
-6.42% ~ $ 33.09 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-4.69% ~ $ 12.20 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-4.46% ~ $ 9.87 | LGAC - LAZARD GROWTH ACQUISITION CORP. I (Pre-Deal)
-3.75% ~ $ 12.58 | PSAC - Property Solutions Acquisition Corp (Announced)
-3.70% ~ $ 13.02 | GHVI - Gores Holdings VI Inc (Announced)
-3.57% ~ $ 13.50 | DFHT - Deerfield Healthcare Technology Acquisitions Corp. (Announced)
-3.55% ~ $ 11.15 | APXT - Apex Technology Acquisition Corporation (Announced)
-3.08% ~ $ 11.97 | THCB - Tuscan Holdings Corp. (Announced)
-2.37% ~ $ 9.90 | CHFW - Consonance-HFW Acquisition Corp (Pre-Deal)

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