Gritstone Asset Management

Although we’re only halfway through August, it’s already proving to be a busy month for SPACs. So far, there have been 5 SPAC IPOs raising $1.1 billion, 3 SPACs announcing pending business combinations, and 6 SPACs closing previously announced business combinations.

IPO activity remained strong in July, with six SPACs raising more than $1.1 billion. Business combination announcements and closings continued to outpace liquidations and business combination terminations. Of note, the two most recent SPAC IPOs placed $10.05 into trust versus their $10.00 IPO price.

The recent uptick in SPAC IPO activity is likely driven by improving SPAC market activity, with transaction announcements running at elevated levels and SPAC liquidations continuing to decline.

In June, 7 SPACs completed IPOs, raising more than $1.1 billion, the highest monthly issuance since March 2022. Notably, many SPACs were raised by repeat sponsors returning to the SPAC market. Additional details on the SPAC market are provided in our attached monthly report.

In the past 30 days, 6 SPACs have completed IPOs, raising more than $880 million in proceeds. This is the highest volume of issuance over a 30-day period since May 2022. This increase in issuance was what we expected based on market signals we noted at the beginning of April. Notably, many recent issuers are experienced SPAC teams returning to the market, which suggests they believe current conditions are conducive to finding and closing business combinations. 

In the period since this report was completed, 11 SPACs have publicly filed with the SEC in preparation for an IPO. That is the highest level of SPAC IPO filing activity since mid-2022. Notably, many are repeat SPAC sponsors that are preparing to return to the market. While we don’t expect the market to return to the peak of SPAC IPO activity in early 2021 (a good thing), it is a strong indication that SPAC sponsors believe current market conditions present a good opportunity for SPACs to find and close business combinations.  #SPAC #IPO

Three SPACs completed IPOs in May, raising more than $675 million. Notably, M. Klein & Company came back to the market with Churchill Capital Corp. IX. Four SPACs also closed transactions during the month, including AltC / Oklo Inc. and Screaming Eagle / Lionsgate Studios with approximately 99% and 41% of shareholders (respectively) electing to remain shareholders (and not redeem), a good sign of support for each transaction. In May, seven SPACs submitted public filings for future IPOs, including multiple repeat sponsors.   #SPAC #IPO

See attached for our latest update on the SPAC market, including recent capital formation activity, SPAC transaction activity and SPAC liquidations. #spac #ipo #ipoalert

Recent market data points suggests that the volume of SPAC IPOs may be approaching an inflection point, with select indicators suggesting that market sentiment appears to be more accommodating to new issues than at any time since early 2020.   #IPOs #SPACs

In March, 13 SPACs closed previously announced business combinations. Additional details on SPAC IPOs, business combinations, and other SPAC events are available in the attached market report. #IPO #SPACs #IPOalert