SPACs are rising: 35 deals worth over $100bln announced in July

Refinitiv data shows 235 SPAC acquisitions so far in 2021

Image used for illustrative purpose.

Image used for illustrative purpose.

Getty Images

In a clear indication that Special Purpose Acquisition Companies (SPACs) is a trend that is gathering steam, 35 SPAC combinations were announced globally during July 2021, according to Refinitiv data. This was the fourth highest monthly tally of all time.  

According to Refinitiv data, the combined value of these deals was $101.7 billion, exceeding $100 billion for only the second time during any one month.

SPACs are blank-check companies—with no business of their own--that are formed to raise capital in an initial public offering (IPO) for the purpose of acquiring an existing one. They are funded by a sponsor, often an equity or wealth management entity.

So far during 2021, 235 SPAC acquisitions have been announced, compared with just 39 during the same period last year.

The combined value of these deals is $484.4 billion, accounting for 15 percent of overall global M&A this year. This compares with just 2 percent last year-to-date, according to the data.

In the MENA region, with its burgeoning startup ecosystem, SPAC’s popularity has soared in recent months. In March, the music-streaming platform, Abu Dhabi-based Anghami, became the first regional company to list on New York's Nasdaq stock exchange following a merger with Vistas Media Acquisition Company Inc., a blank-check company.

Last month, Swvl, a Dubai-headquartered transport technology startup, signed a merger deal with SPAC Queen’s Gambit Growth Capital, which will result in Swvl being listed on Nasdaq.

Blue Whale Acquisition I, a blank check company formed by Abu Dhabi’s Mubadala Capital and targets media and entertainment, raised $200 million in an IPO on Wednesday. 

(Reporting by Brinda Darasha; editing by Seban Scaria)

This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here

© ZAWYA 2021

More From Equities