SPAC Listing Activity Picks Up As September Draws to Close

Special purpose acquisition company (SPAC) deals have resurged, just a bit, in recent days, closing out September in a month that saw more traditional initial public offerings (IPOs) dominate.

In the latest tally to date, as tracked by PYMNTS, combined IPO and SPAC plan announcements show an uptake in banking-related listings to 53, trailed by companies streamlining and digitizing workflows at 41.

And drilling down into the listings themselves: the SPAC Parabellum Acquisition priced a $125 million IPO. The company has said that it is focusing on the Internet of Things, and specifically on companies with enterprise values of between $300 million to $1 billion.

Separately, Berenson Acquisition I, another SPAC, raised $250 million in its own listing. The SPAC’s listing documents with the Securities and Exchange Commission (SEC) state that the firm will seek to merge with firms with enterprise values in excess of $1 billion. Software and tech enabled services companies, said Berenson, are attractive acquisition targets because of their rapid and sustained growth tied to cloud-based infrastructure.

“The cloud delivery model allows for continuous product enhancement and rapid deployment of new features and functionalities. These attributes typically result in attractive customer retention profiles and the opportunity to increase customer lifetime value,” noted the filing.

The listing activity has not been confined to U.S. firms. As noted late in the week, TDCX, a firm focused on digital customer experiences, said it had priced American Depositary Shares to raise nearly $350 million in an IPO, opening to trade on Oct. 1 — and at this writing the shares were up 11 percent on the day. In that company’s SEC document, it said that revenues were up 130 percent through the past two years.

And in a nod to listings within the crypto and blockchain space, U.K.-based Argo Blockchain said it had closed its U.S. listing this week, raising about $127 million. In an August update, the company said that during that month Argo mined 206 Bitcoin or Bitcoin Equivalent (together, BTC) compared to 225 BTC in July. This brings the total amount of BTC mined year-to-date to 1,314 BTC, the company said in its release. Revenues in August amounted to $9.4 million, compared to $7.8 million in July.

Separately, and among the companies generating IPO buzz this week, Warby Parker went public, surging more than 30 percent during its first day.

And as noted in this space, sales have grown for the fashion-forward New York eyewear company in the past few years, so too have its losses.

In its S-1 filing with the Securities and Exchange Commission, the 11-year-old firm posted net revenue of $393.7 million in 2020, 6.3 percent higher than 2019. Losses, however, widened to $55.6 million, up from $1.7 million in 2019, PYMNTS reported. Warby said that 60 percent of its net revenue in 2020 was from eCommerce.

Read also: All Eyes on D2C Darling Warby Parker as Trading Opens Amid Wide Losses