2020's blank check boom hit another major milestone with Therapeutics Acquisition (TXAC).
For the first time in their roughly 20-year history, a SPAC has completed an IPO by selling common shares rather than units, signaling ever-greater demand in the space. SPAC offerings normally include units consisting of shares of common stock and tradable warrants. Therapeutics Acquisition marks a notable first, but it is also part of a trend, with more SPACs this year lowering their warrant component to 1/3 and 1/4 warrants.
2020 SPAC milestones
- The first ever SPAC IPO of common shares: Therapeutics Acquisition (TXAC)
- The largest SPAC ever to go public: Churchill Capital Corp III (CCXXU)
- The largest SPAC ever to file for an IPO: Pershing Square Tontine (PSTH.U)
- The best first-day pop for a SPAC: Panacea Acquisition (PANAU; +13% pop)*
- The biggest quarter ever by proceeds (tied for most deals): 2Q20, 24 SPACs and $7.2 billion
- On pace for a record year in 2020
- Several companies have chosen SPAC listings over IPOs
*7/9/20 update: Therapeutics Acquisition surpassed Panacea, gaining 20% on its debut.
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The article Warrantless but not unwarranted: Therapeutics Acquisition prices first ever SPAC IPO of common shares originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
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