Several special-purpose acquisition companies (SPACs) have their IPO dates set for Tuesday, Nov. 24. Genesis Park Acquisition Corp., Spring Valley Acquisition Corp, and Tiga Acquisition Corp are expected to go public.
One of the new blank check companies that went public in 2020 was that of William Ackman, a hedge-fund billionaire who raised $4 billion in the largest-ever SPAC IPO.
What is a SPAC?
SPACs are also known as “blank check companies” because they are formed specifically to “pool funds in order to finance a merger or acquisition opportunity within a set timeframe.”
Once a new SPAC is created and goes public, leadership has a set period of time, usually two years, to merge with or acquire a private company.
Blank-check companies are currently “under the microscope at the Securities and Exchange Commission,” according to the Wall Street Journal. SEC chairman Jay Clayton said they are looking into how SPAC sponsors are incentivized and compensated.
Three SPAC IPOs going public this week
This year is a record-setting one for SPAC listings. As of September 2020, new blank-check IPOs had raised $41.2 billion. The surge in SPAC activity seems linked to the coronavirus pandemic, which has limited companies' ability to go on the road to raise funds for a traditional IPO.
Here's everything we know about the three new SPACs hitting the market this week.
Everything we know about the Genesis Park Acquisition Corp IPO
Genesis Park Acquisition Corp is a blank check company looking to acquire aerospace and aviation companies. Target companies will have above-average growth in the industry, substantial free cash flow, and enterprise value between $500 million and $1 billion.
The proposed ticker symbol for Genesis Park is GNPK.U. The price is estimated at $10 per unit, for 15 million shares. This would give the SPAC an estimated volume of $150 million.
Everything we know about the Spring Valley Acquisition Corp IPO
Spring Valley Acquisition Corp is focused on the sustainability industry. Businesses this SPAC intends to acquire will likely be in any areas of the industry including energy and power, resource management, transportation, and environmental services. These companies may focus on renewable energy, energy efficiency, and waste management, among other aspects of sustainability.
The company believes that “the sustainability industry has the potential to undergo profound changes.” SVSVU is the anticipated stock ticker symbol for the company. Under lead managers Cowen and Wells Fargo Securities, it intends to release 20 million shares at $10 apiece, for an estimated $200 million valuation.
Everything we know about the Tiga Acquisition Corp IPO
Tiga Acquisition Corp is a SPAC headed by managers Credit Suisse and Goldman Sachs (Asia). Founders are G. Raymond Zage, III, and Ashish Gupta. They wish to leverage their experience in corporate finance and investing in a wide variety of industries.
Like the Spring Valley Acquisition Corp, Tiga Acquisition Corp is expected to go public with 20 million shares priced at $10 each, giving it an overall valuation of $200 million. It will trade on the NYSE under symbol TINVU.