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August 25, 2017

Written by Alexandra Micha, Dealogic Research

Volume and activity both reach record highs

2017 has witnessed the highest YTD volume and activity on record from Special Purpose Acquisition Companies (SPACs) with $9.1bn via 53 IPOs on international stock exchanges. Volume increased by 250% compared to 2016 YTD, when $2.6bn was raised via 16 deals. Americas remained the main market for SPACs in 2017 YTD ($7.9bn via 25 deals), followed by EMEA ($1.1bn via 14 deals) and Asia Pacific ($101m via 14 deals). SPAC listings had slowed down after the 2008 global financial crisis. However, improved market conditions, enhanced listing rules, and the return of investor confidence have all assisted their dynamic resurgence this year.

High proceeds across multiple exchanges

Nasdaq led global exchanges for SPAC listings so far this year. It included the largest such deal in a decade, raising $1.0bn for energy-focused Silver Run Acquisition Corp II. Additionally, the Mexican Stock Exchange listed Vista Oil & Gas, raising $651m in the third largest SPAC listing globally this YTD—and the first ever listed in Latin America. Boosted by the two deals, record proceeds in the Americas accounted for 86.8% of global SPAC proceeds in 2017 YTD, accompanied by the highest activity in the region (25 deals) since 2007 YTD (38 deals).

In EMEA, SPACs hit a new high for activity this YTD and generated the highest proceeds since 2008 YTD ($1.3bn), a six-fold and a two-fold increase, respectively, from the same period last year (2 deals for $340m). Although Milan led the region’s exchanges in proceeds this YTD ($669m via 5 deals), London priced Europe’s largest SPAC IPO since 2008—Ocelot Partners ($418m), targeting European technology companies. It marked the return of SPAC listing in London after a total absence since 2013.

Utility & energy the favored target

With the demand for energy, water, and transportation resources likely outpacing available supply, utility & energy has become the favorite target sector, proposed by 10 SPACs listed globally so far this year. The three largest deals of this kind raised a total of $2.4bn. In comparison, issuers were focused on technology in 2016, and utility & energy did not make the top three. Finance came in second place with 7 deals this YTD, and healthcare tied with oil & gas for third place (5 deals).

Data source: Dealogic, as of August 21, 207

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