Since 2011, Nasdaq has consistently been the exchange of choice for SPACs, attracting 91% of all SPAC IPOs listed on a national exchange. We were pleased to surpass 100 SPAC listings on Nasdaq last week.
Last year, Nasdaq welcomed 25 SPACs, up 92% from the 13 SPAC IPOs we welcomed in 2016. With four SPAC listings so far this quarter, we expect to see momentum continue commensurate with favorable market conditions. Top 2017 SPAC listings on Nasdaq include Silver Run Acquisition II (Nasdaq: SRUN) / $900M, Vantage Energy Acquisition (Nasdaq: VEAC) / $480M, Federal Street Acquisition Corporation (FSACU) / $400M, Gores Holdings II, Inc. (Nasdaq: GSHTU) / $375M, and Kayne Anderson Acquisition Corporation (KAACU)/ $350M. The average proceeds raised among those deals was $501M.
* Data up to and including 1/30/2018
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.
"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."
Over the past two years we saw 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. 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.
Notable companies that entered the public markets over the past few years, through mergers with SPACs, each of which chose to list on Nasdaq, include oil and gas producer Silver Run II (Nasdaq: SRUN), dessert manufacturer and marketer Hostess Brands (Nasdaq: TWNK), 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). There was a strong demand for SPAC listings in 2017, and we look forward to providing capital market support to the SPAC Ecosystem in 2018.
Nasdaq is committed to supporting companies interested in pursuing a SPAC offering. For more information please contact Jay B. Heller, Head of Equity Capital Markets at Nasdaq: Phone: (212) 401-8932 / Email: jay.heller@nasdaq.com
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed asinvestment advice either on behalf of a particular security, sector or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding sector performance and specific companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
