High-profile special purpose acquisition companies like Pershing Square Tontine Holdings (NYSE:PSTH) and Social Capital Hedosophia Holdings V (NYSE:IPOE) faced pressure in Friday’s session as investors grew wary of SPACs, although the sector later partly rebounded and PSTH even went positive.
The number of public listings by companies without revenues valued above $1 billion has exceeded what was seen in the dot-com era, according to data from the Wall Street Journal.
This year has seen an incredible increase in interest surrounding special purpose acquisition companies (SPACs). In fact, many companies have come to the market via this path. These companies do not have operations, but instead exist to raise capital via an initial public offering (IPO) to fund the company they merge with.
Pershing Square Tontine Holdings Ltd (NYSE:PSTH) has bucked the trend of most SPACs (Special Purpose Acquisition Corp.), both in terms of the type of deal it’s looking to make and its size.
Pershing Square Holdings is a closed-end fund trading in London and Amsterdam.
It trades at a 28.5% discount to net asset value, which is a lot in a relative and absolute sense.
The fund has exposure to sponsorship warrants in the largest SPAC in history that are likely undervalued on its book.
2020 has meant a lot of things to different people. But for Jeff Selman, a partner at DLA Piper, who advises on the creation and funding of SPACs to take companies public, it’s been an extremely busy year.
Three blank-check companies backed by venture investor Chamath Palihapitiya have raised a total of $2.1 billion through initial public offerings, the companies said in separate statements on Thursday.
Shark Tank investor Kevin O’Leary shared his SPAC-picking strategy during CNBC’s Halftime Report on Tuesday.
It’s a brilliant, blue-sky afternoon in mid-August, and Bill Ackman is enjoying being, well, Bill Ackman.
Maybe it’s the sun. Or maybe it’s the aftermath of his latest tour de force — the IPO of a $4 billion special-purpose acquisition company, or SPAC, the largest of its kind during a year when such blank-check deals are exploding.
New York lawyer Douglas Ellenoff’s firm was the go-to adviser for “blank-check” initial public offerings long before the niche market exploded into the most fashionable way to go public.
SPACs used to be a small segment of the market, but elite law firms have flocked to the sector in…
SPACs (special purpose acquisition or “blank cheque” companies) have recently regained prominence in the US, with H1 2020 seeing record-breaking levels of activity, both in terms of value (Bill Ackman’s $4bn Pershing Square Tontine is the largest SPAC IPO to date, eclipsing previous records) and volume (SPACs accounted for around 30% of all US IPOs in H1 2020). One of the reasons for the revived interest is that experienced founder teams can benefit from a dislocated market to find good opportunities that yield attractive returns.
Short-term rental giant Airbnb has said “thanks, but no thanks” — at least for now — to a proposal to go public by merging with billionaire Bill Ackman’s special purpose acquisition company (SPAC).
One of the very interesting topics Directors are hearing about is a liquidity structure called a SPAC (Special Purpose Acquisition Company). As Directors get invited to join Boards of SPACs or do their diligence if a SPAC is right for their private company, I share some information I think will be helpful.
Steve Burns pulled together several pieces of a business venture over the last year: His company, Lordstown Motors, designed an…
Special purpose acquisition companies (SPACs) – also called “blank check companies” – have surged in popularity this year. That’s because…
6 SPACs investors should know. Rather than dealing with the hassle of an initial public offering, an increasingly popular alternative…