SPACs are publicly-traded investment vehicles that raise funds via an IPO in order to complete a targeted acquisition. SPACs allow investors to co-invest side-by-side with best-in-class sponsors. Sponsors of SPACs can include individuals with extensive deal making experience and/or expertise in a particular industry, as well as traditional private equity firms. As the product continues to increase its institutional acceptance, the diversity among sponsors is increasing and rapidly evolving.
Since 2011, Nasdaq has consistently been the exchange of choice for SPACs, attracting 95% of all SPAC IPOs listing on a national exchange.
Year-to-date, Nasdaq has welcomed 19 SPAC IPOs, exceeding the 13 SPAC IPOs in all of 2016. The average proceeds raised amongst those deals in 2017 has been $254M, which would represent the largest annual average deal size on record. Top 2017 listings include Silver Run Acquisition II (SRUN) / $900M, Vantage Energy Acquisition (VEAC) / $480M, Federal Street Acquisition (FSAC) / $400M, Gores Holdings II (GRSH) / $375M and Kayne Anderson Acquisition (KAAC) / $350M.
Nasdaq is proud of its history of providing capital markets support to the SPAC ecosystem— demonstrated by the 91 SPACs that have successfully listed on our market. Our dedicated team of specialists provides white glove service to SPACs and their advisors, from trading, to visibility support, to regulatory oversight around the transaction.
"Investors' ability to create innovative investment vehicles like SPACs spurs economic growth and brings more attention to the U.S. capital markets," said Nelson Griggs, President of the Nasdaq Stock Exchange. "SPACs afford private companies a unique way to access growth capital in the public markets. Nasdaq is proud to support SPACs and their advisors as they continue to evolve the public investing landscape."
The past year has seen several of the most high-profile business combinations in the history of SPACs and Nasdaq is proud to add this diverse group of companies to the family of industry leading companies that call Nasdaq home.
Hostess Brands, Inc., makers of America’s most iconic baked sweet goods, visited the Nasdaq MarketSite in Times Square on November 10, 2016, to celebrate the company’s listing on The Nasdaq Stock Market through their merger with Gores Holdings.
Notable companies entering the public markets through mergers with SPACs, each of which chose to list on Nasdaq, include oil and gas producer Centennial Resource Development (Nasdaq: CDEV), sweet good manufacturer and marketer Hostess Brands (Nasdaq: TWNK), luxury resort operator Playa Hotels & Resorts (Nasdaq: PLYA), healthy food producer Simply Good Foods (Nasdaq: SMPL), enterprise information management company Exela Technologies (Nasdaq: XELA) and global Liquid Natural Gas developer NextDecade (Nasdaq: NEXT).
Playa Hotels & Resorts rang the Nasdaq Closing Bell on April 4, 2017, to celebrate their public debut after combining with TPG-backed Pace Holdings. Playa is the first and only company devoted exclusively to the all-inclusive resort experience to become publicly traded.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
