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Morning SPAC News Roundup: January 31, 2024


Morning SPAC News Roundup: January 31, 2024

At the SPAC of Dawn

Morning SPAC News Roundup-readers have spoken! On the eve of the Fed’s press conference, we asked SPACInsider subscribers in this space to predict the number of SPAC IPOs in 2024.

As a baseline, 2023 saw 31 SPAC IPOs, there were 86 in 2022 and one has already priced in 2024 – JVSPAC (NASDAQ:JVSAU). So, the question is in some ways, “will SPAC IPO volume increase, decrease or stay roughly the same.”

SPACInsider‘s subscriber base is primarily made up of the institutional dealmakers and investors around SPAC transactions. So, although 30 responses is a relatively small sample size, a large majority of that clued-in group of respondents believe the 2024 environment will be the same or better for SPACs.

Nearly 76.7% of respondents predicted there would be more than 25 IPOs this year, and 16.7% predicted 50+. During SPACInsider‘s webinar breaking down the SEC’s new SPAC rules, Doug Ellenoff, a partner at Ellenoff Grossman & Schole, placed his chips in the 50+ camp, predicting double 2023’s output, or 62.

But, 23.3% of respondents in the poll predicted the decrease in SPAC activity to continue with less than 25 IPOs this calendar year. Sentiments may change as the market gets further away from the SEC rule drop and closer to a Fed rate cut, but for now the general consensus is for a steady course.

News and Rumors

  • PR: Estrella Immunopharma (NASDAQ:ESLA) will begin a share repurchase program for up to $1 million in stock. Estrella combined with TradeUp in September 2023.
  • Bloomberg Law: The lawsuit over 26 Capital‘s failed combination with Okada Manila just got bigger as a Delaware judge allowed Zama Capital Master Fund to join. Zama is to be aligned with the branch of the suit accusing an affiliate of Japan’s Universal Entertainment of unduly canceling the deal and interfering in local legal disputes in the Philippines.
  • PR: Solar power company Alternus Energy (NASDAQ:ALCE) announced in an 8-K filing that it has repaid €59.1 million (about $64.1 million) in bonds after divesting certain assets in Italy and Poland. Alternus combined with Clean Earth in December 2023.