SPAC Weekly | ARC Global SPAC Brief (29th Nov-03rd Dec)

• Approximately $2.3 billion were raised for the 11 SPACs that listed this week. There were 7 new business combinations announced, and 8 combinations completed.

• ARC Group Served as Sole Adviser on a $75 Million S-1 Filing for DUET Acquisition Corp.

• ARC Group Served as Sole Adviser on a $230 Million IPO for Canna-Global Acquisition Corp.

• Altimeter Growth Corp. completed combination with Asian ride-hailing service Grab, becoming the largest-ever SPAC merger.

• The largest SPAC IPO of the week is ST Energy Transition I which raised $250 million with focus on the Energy sector globally.

• The New Announced Mergers and Completed Mergers mainly happened in the Media & Entertainment, Energy, and Healthcare industry.

During this week, 6 new SPACs filed their S-1 totaling $0.8 billion in trust value, averaging $133.3 million.

Here is the brief description on the new SPACs which filed S-1：

• Keyarch Acquisition Corp. filed S-1 for $100 million IPO to target the Technology sector globally. It is sponsored by Keywise Capital Management.

• USA Acquisition Corp. filed S-1 for $150 million IPO to target the Technology sector globally. It is sponsored by Union Square Advisors.

• Welsbach Technology Metals Acquisition Corp filed S-1 for $75 million IPO to target the Material sector globally.

• Atlantic Coastal Acquisition Corp. II filed S-1 for $250 million IPO to target the Automotive sector globally.

• AP Acquisition Corp. Limited filed S-1 for $150 million IPO to target the Energy sector globally. It is sponsored by Advantage Partners.

  
  

During 29th November – 3rd December, there were 11 SPACs IPO’s, raising $2.3 billion in gross proceeds. An increase of 156 % from $0.9 billion compared to previous week. The average IPO size was $210 million.

More details on the target focus of these New Listed SPACs:

• BioPlus Acquisition Corp. announced the pricing of its upsized $200 million IPO. The new SPAC intends to combine with a global life sciences business with strong preclinical or clinical data driving confidence in successful clinical proof of concept.

• Blue Ocean Acquisition Corp. announced the pricing of its upsized $165 million IPO. The new SPAC intends to focus its search for a target business or businesses in the digital media and consumer internet industries.

• ST Energy Transition I Ltd. announced the pricing of its $250 million IPO. The new SPAC intends to focus its search on opportunities that contribute in positive ways towards energy transition and clean energy technology.

• Bullpen Parlay Acquisition Company announced the pricing of its $200 million IPO. The new SPAC intends to specifically focus on companies with digital-first products and services that also intersect with offline and physical customer experiences.

• ROC Energy Acquisition Corp. announced the pricing of its upsized $180 million IPO. The new SPAC intends to focus its search on the non-operated, upstream oil and gas sector in the U.S.

• UTA Acquisition Corp. announced the pricing of its $200 million IPO. The new SPAC intends to focus its search on businesses in gaming, but also across related areas within the broader digital media, creator economy, entertainment, and technology landscape.

• Games and Esports Experience Acquisition Corp. announced the pricing of its upsized $175 million IPO. The new SPAC intends to focus its search on interactive media companies operating directly within or adjacent to competitive gaming and esports.

• Capitalworks Emerging Markets Acquisition Corp. announced the pricing of its $200 million IPO. The new SPAC intends to focus on high-growth companies operating in select emerging markets, with the ability to replicate their business models sustainably across other emerging markets or translate their products, services, or technologies to developed markets.

• PROOF Acquisition Corp. I announced the pricing of its upsized $240 million IPO. The new SPAC intends to identify and merge with a business that has the potential to achieve sustainable growth and which addresses a large and growing market.

• TLGY Acquisition Corp. announced the pricing of its upsized $200 million IPO. The new SPAC intends to focus its search on the global biopharma or technology-enabled business-to-consumer (“B2C”) industries.

• Roth CH Acquisition V Co. announced the pricing of its $100 million IPO. The new SPAC intends to target businesses operating in the business services, consumer, healthcare, technology, wellness, or sustainability sectors.

During the period from 29th November to 3rd December, 7 SPACs have entered into Merger Agreements, 8 SPACs have completed their business combinations.

The 7 SPACs that have entered into Merger Agreements: 

• Apollo Strategic Growth (NYSE:APSG) has entered into a definitive agreement to combine with American Express Global Business Travel at an enterprise value of $4.98 billion, or 6x its 2021E revenue. New Jersey-based Amex GBT provides a marketplace and loyalty platform for companies providing business travel goods and services

• ArcLight II (NASDAQ:ACTD) has entered into a definitive agreement to combine with renewable gas producer OPAL Fuels at an enterprise value of $1.75 billion, or 7.4x its 2023E EBITDA. White Plains, New York-based OPAL produces and distributes renewable natural gas and electricity from biomethane sources.

• BOA Acquisition Corp. (NYSE:BOAS) has entered into a definitive agreement to combine with hospitality brand Selina at an enterprise value of $942 million, or 4.0x 2022E revenue. The London-based company is one of the world’s largest hospitality brands built to accommodate co-working, recreation, wellness, and local experiences.

• CF VI (NASDAQ:CFVI) has entered into a definitive agreement to combine with social video platform Rumble at an enterprise value of $2.1 billion. Toronto-based Rumble provides a video content platform with about 36 million monthly active users popular among conservative commentators and viewers.

• Atlantic Coastal (NASDAQ:ACAH) has entered into a definitive agreement to combine with additive manufacturing firm Essentium at an enterprise value of $974 million, or 4.6x its 2023E revenue. College Station, Texas-based Essentium provides machines that can remotely print tools and parts for the defense sector as well as a variety of civilian clients.

• Broadscale Acquisition Corp. (NASDAQ:SCLE) has entered into a definitive agreement to combine with software engineering platform Voltus at an enterprise value of $816 million, or about 4.8x its 2023E revenue. The San Francisco-based company provides a platform that connects distributed energy resources to electricity markets, allowing customers to monetize and optimize excess power.

• Adit EdTech (NYSE:ADEX) has entered into a definitive agreement to combine with bitcoin self-mining company Griid Infrastructure at an enterprise value of $3.3 billion, or about 2x its 2023E revenue. The New York-based company operates three bitcoin mining operations in the US powered by an electricity mix that is 70% carbon-free.

The 8 SPACs that have completed the Mergers:

• Altimeter Growth Corp. (NASDAQ:AGC) secured shareholder approval of its combination with Asian ride-hailing service Grab. Altimeter disclosed that holders of just 8,565 shares exercised their right to redeem their shares for cash at a redemption price of approximately $10.00 per share, representing an aggregate redemption amount of $85,654.47, or just 0.017%.

1. This is the largest-ever deal to close a SPAC merger and go public. It valued Grab at $39.6 billion.

2. Proceeds of US$4.5 billion represents the largest-ever U.S. public listing by a Southeast Asian company.

3. US$4.0 billion PIPE is the largest ever raised, including investors like BlackRock, Fidelity, T. Rowe Price, Morgan Stanley’s Counterpoint Global fund, etc.

4. Grab operates across 465 cities in 8 countries, enabling high frequency hyperlocal consumer services such as food delivery, ride-hailing, grocery delivery, e-payments, financial services and more — all through a single "everyday everything" app.

5. Grab’s early backers include SoftBank, Toyota, Hyundai Motor and China’s Didi Chuxing, among others.

• 890 5th Avenue Partners, Inc. (NASDAQ:ENFA) secured shareholder approval of its combination with online media outlet BuzzFeed in a special meeting this week. The press release disclosed that the transaction is expected to raise at least $166.2 million through a combination of the trust proceeds along with $150 million fully committed convertible notes. The SPAC raised $287.5 million in a January IPO.

• Foresight Acquisition Corp. (NASDAQ:FORE) announced this week that its shareholders have approved its combination with healthcare provider P3 in a special meeting held this morning. Although the business combination was overwhelmingly approved.

• Thimble Point Acquisition Corp. (NASDAQ:THMA) announced in an 8-K filing that it secured shareholder approval of its combination with digital treatment provider Pear Therapeutics in a special meeting.

• Aldel Financial Inc. (NYSE:ADF) announced this morning that its shareholders have approved its combination with car insurer Hagerty in a special meeting held Wednesday.

• DD3 II(NASDAQ:DDMX) secured shareholder approval of its combination with gaming platform Codere Online. Madrid-based Codere Online is the internet division of the Codere Group (MD:CDRE), which operates physical casinos in Spain, Italy, Mexico, Colombia and Panama. Codere Online offers sports betting and online casino features on the web and mobile.

• ION Acquisition Corp 2 Ltd. (NYSE:IACB) secured shareholder approval of its combination with ad delivery platform Innovid.

• Greenrose Acquisition Corp. (NASDAQ:GNRS) secured shareholder approval of its combination with four cannabis companies, Shango, Futureworks LLC, Theraplant LLC, and True Harvest LLC

In 2021, there have been 571 SPAC IPOs and they are holding $154 billion total in trust; 117 SPACs of which have entered into merger agreements with potential targets and pending to be completed; and 178 mergers closed having $429 billion enterprise value, and 1 SPACs liquidated.

References list:

https://www.sec.gov/

https://spacinsider.com/

https://spacalpha.com/

https://www.spacresearch.com/

https://spactrack.net/

https://www.renaissancecapital.com/

https://www.crunchbase.com/

https://finance.yahoo.com/news/grab-trade-nasdaq-following-successful-210500061.html

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