SPAC enthusiasm is slowing, as evidenced by rising redemption rates.
About a quarter of them had redemption rates of 80% or above.
That’s in sharp contrast with the period between October 2020 and March 2021, when most had 0% redemptions.Investors are still voting to approve most mergers — even if they're redeeming their shares for those very same deals — a behavior that's concerning some experts.We’re digesting a really long period of over-exuberance, and there’s an oversupply in the market," Kwasnick tells Axios, adding that there’s decreased demand for SPAC IPOs.
And one byproduct of this weakened demand has been an uptick in sponsors getting anchor investors for their IPOs, often by offering them more favorable terms and even some of their own founder shares. "I’ve heard if you can bring the implied cost basis down to $9.50 for anchor investors, they’re usually willing to buy 10% of your IPO," an industry source told Axios.During the boom, when SPAC common shares were trading above their IPO price, participating in a PIPE often meant guaranteed gains.So while the ratio of PIPE size to a deal’s minimum cash requirements was at 100% back in February, according to SPAC Research data, it came down to 60% by July.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Topps SPAC merger with Mudrick Capital dies because MLB killed 70-year-old trading card dealTopps had been the trading card partner of Major League Baseball since 1952. Its SPAC merger with Mudrick Capital just blew up.
Consulte Mais informação »
Ackman’s SPAC inconveniences everyoneThe hedge fund manager aimed to have the biggest and most shareholder-friendly blank-check firm. After a deal setback and a lawsuit, he’s hoping to return $4 bln to investors early. His novel ideas have become a burden for them, for him, for regulators and even for other SPACs.
Consulte Mais informação »
Concrete and cement industries brace for demand boom from $1 trillion infrastructure planDemand for concrete appears to have only increased after Congress passed the $1 trillion infrastructure package to upgrade America's roads, bridges and tunnels.
Consulte Mais informação »
The Cruise Trips Most in Demand Don’t Embark Until 2022 and BeyondAs they track Covid-19, many fans of sailings on Carnival, Royal Caribbean and other lines are booking far in advance to hedge their bets.
Consulte Mais informação »
Marchers Demand Return of Dutch Music FestivalsHundreds of performers and festival organizers held marches through six Dutch cities to protest what they argue are unfair restrictions that have forced the cancellation of summer music festivals
Consulte Mais informação »
Pool Demand Exploded in the U.S. During Covid—Even in ChicagoPrivate outdoor pools have become a hot commodity during the pandemic, even in places like the Midwest where warm weather is limited.
Consulte Mais informação »