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SPAC’s are the Hottest Trend in Global Deal Making

#mergers #Asia #SPAC #IPO

$GS $UBS

The world may have been locked down and masked up, but M&A endured and grew, as SEPACs became the Hot trend in M&A investment banking” — Paul Ebeling

Asia’s bankers say they expect the hottest trend in global deal-making, IPOs for SEPAC (special-purpose acquisition vehicles), to soar in the region this yr driven by well-resourced investors including private equity firms.

Globally, SPACs raised $92-B from IPOs in Q-1 of Y 2021, according to Refinitiv data, surpassing all of Y 2020. SPAC mergers, e.g. when the blank check firm uses IPO funds to merge with a target. amounted to $210-B.

But Asia’s representation in the global action has been small so far, as only 11 out of Y 2021’s 304 SPAC IPOs, and just $4.7-B in SPAC mergers. Given the region’s large pool of new-economy companies, bankers are now plugging it as a hot spot for merger targets.

The Co-head of M&A for Asia sans-Japan at Goldman Sachs (NYSE:GS), said the significant increase of Asia-focused SPAC involvement has been the most notable feature in the region’s M&A this yr. Asia M&A hit a 3-yr high of $279.5-B +37% Y-Y, with private equity-backed deals scoring a record $40.6-B.

“These blank check companies (SPACs) have become a new dynamic force and potential merger partner for some of Asia’s most innovative companies,” he said.

The head of Asia M&A at UBS, said SPAC-related activities will last for the large part of this yr.

The merger candidates and demand from SPACs are there!

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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