Key SPAC Talking Points
- Grab Holdings is set to be the largest SPAC listing ever, valued at $40 Billion
- Astronomical valuation has seen the value of Grab Holdings double in just under two years
- US SPACs have raised over $99 billion in 2021 alone, with a total of 306 registered blank check companies
Grab Holdings is set to take US markets by storm, as the Singapore-based company announced it was merging with Altimeter Growth Corp. and would soon be listed on the Nasdaq exchange. The deal, totaling $39.6 billion, sets a new record for the largest SPAC deal. Grab, which focuses on ride-hailing, food delivery, and digital payments has seen its valuation more than double from $15 billion in just 18 months.
SPAC IPO Transactions by Year
Courtesy of spacinsider.com
Despite the massive size of the Grab SPAC deal, the excitement surrounding the SPAC market has simmered in recent weeks, as the broader retail mania that dominated US markets for much of the winter slowly began to dissipate.
The retail mania that dominated markets just a few months ago was significant enough to force the Securities and Exchange Commission to monitor and scrutinize the sheer volume of SPAC deals taking place. The SEC has outlined a desire to see clearer disclosures from SPACs, and they wish to dispel the notion that SPACs are free to tout projections with less liability risk.
| Change in | Longs | Shorts | OI |
| Daily | 12% | 2% | 5% |
| Weekly | -6% | 3% | 0% |
SPAC Boom
There has been a record $99 billion raised in 2021 courtesy of 306 US-listed SPACs. Perhaps more astounding, 434 SPACs are currently on the market and seeking an acquisition target. Despite the recent lull in the SPAC market, the Grab deal will surely reignite the focus on alternative public listings.
SPAC Status by Year of IPO
Courtesy of spacinsider.com
Top Performing SPACs Post-Listing
Chart courtesy of SPAC Analytics
--- Written by Brendan Fagan, Intern for DailyFX
To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter
