The boom in blank-check companies earlier this year has lured companies to list in New York and has cut into Europe’s share of the global market for initial public offerings. Signa Sports United, a Berlin-based sports e-commerce and technology platform, is among the latest looking at this route through a special-purpose acquisition company, or SPAC.… Continue reading SPACs Bolster the U.S.’s Global Lead in IPOs
Tag: SPACs
‘Shark Tank’ Judge’s SPAC in Talks to Merge with Insurer
Home-coverage startup Kin Insurance is in talks to go public via Omnichannel Acquisition Corp., a special purpose acquisition company led by recurring “Shark Tank” guest judge Matt Higgins, according to people with knowledge of the matter. The combined entity is set to be valued at over $1 billion, one of the people said. Terms could… Continue reading ‘Shark Tank’ Judge’s SPAC in Talks to Merge with Insurer
U.S. Watchdog Mulls Guidance to Curb SPAC Projections, Liability Shield
The U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions. The previously unreported measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown… Continue reading U.S. Watchdog Mulls Guidance to Curb SPAC Projections, Liability Shield
SPAC Surge Pumps Up Junk-Bond Market
The wave of cash raised by special-purpose acquisition companies is rolling into the junk debt market, aiding distressed companies and rewarding investors who own their bonds and loans. SPACs, also known as blank-check companies, have issued roughly $100 billion of stock this year, a record, to buy private companies and take them public. Some SPACs… Continue reading SPAC Surge Pumps Up Junk-Bond Market
SPAC Hot Streak Put on Ice by Regulatory Warnings
Investors are cooling to one of the hottest bets on Wall Street as new regulatory scrutiny of special-purpose acquisition companies cuts the flood of new issues to a trickle while share prices tumble. SPACs have raised about $100 billion so far this year, more than last year’s record of $83.4 billion, which itself was more… Continue reading SPAC Hot Streak Put on Ice by Regulatory Warnings
Former Allianz Insurance Veteran Wemmer Plans Amsterdam SPAC
Dieter Wemmer, a veteran insurance executive who was chief financial officer at Allianz SE, is launching a blank-check company to target deals in the sector where he worked for more than three decades, people familiar with the matter said. Wemmer plans to raise about 250 million euros ($300 million) on the Amsterdam stock exchange in… Continue reading Former Allianz Insurance Veteran Wemmer Plans Amsterdam SPAC
SPAC Boom Faces New SEC Threat with Accounting Crackdown
U.S. regulators are throwing another wrench into Wall Street’s SPAC machine by cracking down on how accounting rules apply to a key element of blank-check companies. The Securities and Exchange Commission is setting forth new guidance that warrants, which are issued to early investors in the deals, might not be considered equity instruments and may… Continue reading SPAC Boom Faces New SEC Threat with Accounting Crackdown
Post-SPAC Technology Company Hit with Securities Class Action
Private companies with cutting-edge technology have become particularly attractive targets for special purpose acquisition companies (SPACs). These private companies may choose to go public via SPAC for a number of reasons that include the ability to share projections with investors, better valuation prospects and deal execution certainty. Much like companies that go public by way… Continue reading Post-SPAC Technology Company Hit with Securities Class Action
SPAC Listings Slow to A Crawl with Bankers Buried in Paperwork
Anxiety is growing that the wellspring of special-purpose acquisition companies, a 2020s echo of the dot-com mania of the 1990s, is bumping up against the limits of both Wall Street and Washington. The pipeline of SPACs rushing to market is getting so clogged that bankers, lawyers and auditors are turning away business as they struggle… Continue reading SPAC Listings Slow to A Crawl with Bankers Buried in Paperwork
WeWork Plans to Go Public in $9B SPAC Merger
WeWork has agreed to merge with a special-purpose acquisition company in a deal that would take the shared-office provider public nearly two years after its high-profile failure to launch a traditional IPO. The planned merger with the BowX Acquisition Corp. SPAC values WeWork at $9 billion including debt, the companies announced Friday, confirming an earlier… Continue reading WeWork Plans to Go Public in $9B SPAC Merger