In the past few years, special purpose acquisition companies (SPACs) have become all the rave in the financial world because they can facilitate massive initial public offerings (IPOs) via mergers with startups. According to statistics, SPACs were able to raise almost $83 billion last year and by June 2021, almost $108 billion has been raised by SPAC-facilitated IPOs as almost 350 new companies have made their debut on the stock market. As per Ido Fishman, it remains to be seen as to how many more startups will go public via the SPAC path this year. It appears the technology sector is favoring this method more than any other industry.
It is not surprising that investors want to tap into the potential of this hot trend and put their money in a SPAC. But, which one? This is where people are flummoxed because there are numerous options. Of course, there is no accurate way of predicting how a particular one will perform, but there are some good options to check out. Let’s take a look:
InterPrivate II Acquisition Corp.
This special purpose acquisition company is based in New York and it went public in March 2021. A sum of $260 million was raised in the initial offering and is focused on mergers with companies that are working in the retail, auto, consumer and industrial technology businesses. Ahmed Fattouh is the CEO and its market capitalization is over $315 million.
FirstMark Horizon Acquisition Corp.
Another option that Ido Fishman has highlighted for investors to explore is FirstMark Horizon Acquisition Corp. which is also based in New York. It raised more than $414 million after going public in October 2020. The firm is mostly focused on mergers with tech companies that are based in Canada and the United States. Its market capitalization is around $516 million and it is different from other SPACs because it has permission of conducting transactions with other companies that are affiliated with individuals sitting on the board of directors of the company or the sponsors.
Tuscan Holdings Corp.
Also headquartered in New York, this special purpose acquisition company went public in March 2019 and was able to raise a capital of $276 million. As per Ido Fishman, it concentrates on IPOs related to the tech sector and the company’s CEO is Stephen Vogel. This SPAC has signed a definitive agreement with a Texas-based firm called Microvast Inc., which designs battery control systems and has a valuation of more than $3 billion. It is currently in talks for an IPO in the coming months. As for Tuscan’s market capitalization, it is just over $440 million.
Fusion Acquisition Corp.
This SPAC went public back in June 2020 and was able to raise more than $350 million from its initial public offering. Ido Fishman states that it targets mergers with other firms in wealth management, financial services and technology sectors. Moreover, it has also entered into a definitive agreement with mobile banking company based in New York called MoneyLion, which has a valuation of around $3 billion. Its IPO is planned for 2021 and private investment firms are expected to support the merger in the form of $250 million.
Fortress Value Acquisition Corp. II
After going public in August of 2020, this special purpose acquisition company raised a sum of $345 million. Ido Fishman states that this SPAC focuses on mergers with companies in the tech sector and its market capitalization is around $450 million, while its CEO is Andrew McKnight. It was able to complete a merger and an IPO with Illinois-based ATI Physical Therapy, Inc., which is a physical therapy firm that was established in 1996 and has a valuation of around $2.5 billion. It is currently the largest outpatient therapy provider in the US and has more than 900 physical therapy clinics. The underwriters of its merger with Fortress included Deutsche Bank and Morgan Stanley.
Zanite Acquisition Corp.
Operating from Ohio, this special purpose acquisition company went public in November 2020 and raised around $230 million. Ido Fishman states that this SPAC targets mergers with companies that are working in defense, aerospace, and emerging technology sectors. Steven Rosen is the company’s CEO and it is reportedly considering a merger with Eve Urban Air Mobility. Based in Florida, it is an aerospace firm that’s working on electric vertical landing and takeoff vehicle and more for urban air mobility. Its valuation is around $2 billion and is expected to make its debut later this year or in the beginning of next year.
Alussa Energy Acquisition Corp.
Headquartered in the Cayman Islands, this SPAC went public in November 2019 and raised $300 million via its initial offering. Daniel Barcelo is the company’s CEO and Ido Fishman states that its target is mergers with companies in the energy sector. Therefore, it has signed a definitive agreement with a firm based in Norway called FREYR, which is developing lithium ion batteries. Its valuation is around $1.5 billion and it hopes to raise around $850 million from its initial public offering for funding a project that can help them scale up manufacturing capacity of clean battery cell in Norway. It plans to accomplish this in the next four years.
FTAC Olympus Acquisition Corp.
Based in Philadelphia, this SPAC had its IPO in August 2020 and was able to raise more than $254 million from it. Ryan Gilbert serves as the company’s CEO and Ido Fishman highlighted that its focus is on companies in the tech sector, particularly financial technology. It has signed a definitive agreement with fintech firm named Payoneer, which is based in New York, and has a valuation of more than $3.3 billion. It is going to make its debut on the stock market soon and will trade on the NASDAQ stock exchange. As far as FTAC is concerned, its current market capitalization is around $1 billion.
These are some solid options that investors can explore when they are thinking about investing their money in a SPAC for generating returns in the future.
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