In addition to the COVID-19 pandemic and the election of Joe Biden, one of the biggest stories of 2020 was the surge in initial public offerings (IPOs) from special-purpose acquisition companies, aka SPACs or blank-check companies. SPACs raise capital in IPOs of their own with the purpose of acquiring another company and then combining with that company in a reverse merger, after which the SPAC typically adopts the name of the target company and begins trading.
Last year, IPO analysis firm Renaissance Capital recorded 194 traditional IPOs, compared to 200 SPAC IPO combinations. Traditional IPOs raised $67 billion and SPAC IPOs raised about $64 billion.
As of Tuesday, Stock Market MBA lists 180 SPACs that have either raised capital through an IPO or announced an intention to do so. Of the companies that already have raised money, the largest is Pershing Square Tontine Holdings Ltd. (NYSE: PSTH), which has raised $5.9 billion since its September IPO at a share price of $20. Shares closed Tuesday at just over $29. The smallest amount of capital raised last year was $55 million by Greencity Acquisition Corp. (NASDAQ: GRCY), a Shanghai-based blank-check company.
So far in 2021, 23 SPACs have filed for an IPO and 11 had completed an IPO as of last Friday and raised a total of around $3.7 billion.
Here’s a brief rundown of the six blank-check companies scheduled to complete an IPO this week. No combinations of a blank-check company with a target business are on the IPO schedule this week.
FoxWayne Enterprises Acquisition Corp. (NASDAQ: FOXWU) issued 5 million units on Tuesday at $10 per unit. Each unit comprises one share of Class A common stock and one warrant that may be redeemed for one more share of common stock at a price of $11.50. The company is focusing on acquiring a business in biotechnology or telemedicine, or in the North American technology industry.
Legato Merger Corp. (NASDAQ: LEGOU) on Tuesday priced a Wednesday IPO offering of 20.5 million units at $10 per unit. The offering included 3 million more units than originally planned. Each unit comprises one share of Class A common stock and one warrant that may be redeemed for one more share of common stock at a price of $11.50. The firm plans to acquire a business in the renewables, infrastructure, engineering/construction or industrial industries.
TSP Strategies Acquisition Corp. (NASDAQ: TZPSU) on Wednesday completed an offering of 25 million units at $10 per unit. Each unit includes one share of common stock and one-third of a warrant, exercisable at a per-share price of $11.50. The company has no particular industry or region targeted for a potential combination.
Queen’s Gambit Growth Capital (NASDAQ: GMBTU) has priced a Wednesday IPO of 30 million units at $10 per unit. Each unit comprises one share of Class A common stock and one warrant that may be redeemed for an additional one-third share of common stock at a price of $11.50 per share. In its filing, the company said it plans to focus its search “on a target business that provides solutions promoting sustainable development, economic growth and prosperity.”
European Sustainable Growth Acquisition is expected to price complete its IPO on Friday. The company plans to sell 12.5 million units at $10 per unit. Each unit comprises one share of Class A common stock and one warrant that may be redeemed for an additional one-half share of common stock at a price of $11.50 per share. The company intends to focus its search on “European companies with leading edge technology in sustainable industries and compelling growth trajectories in a variety of areas such as renewable energy, food/agri-tech, water conservation, energy storage, recycling, ed-tech/online learning, fintech and data/cloud.” Upon completion of the IPO, units will trade on the Nasdaq under the ticker symbol EUSGU.
Growth Capital Acquisition plans to sell 12.5 million units at $10 per unit in a Friday IPO. The firm originally planned to issue 15 million units, each consisting of one share of common stock and one-half of a warrant, exercisable at a per-share price of $11.50. The firm has not identified a business combination target. Units will trade on the Nasdaq under the ticker symbol GCACU.
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