The IPO market is slowing down to a turkey trot this week. Just a handful of SPAC IPOs are on the pricing radar so far. The Thanksgiving holiday on Thursday (Nov. 25, 2021) makes this a four-day work week. The U.S. stock market will be closed Thursday. Friday will be a short trading day, with an early close at 1 p.m. EST for both the NYSE and the NASDAQ. The market’s holiday slowdown is traditional – and it’s especially welcome in a record year for IPOs. More than 900 IPOs (including 541 unit offerings, mostly SPACs) have been priced so far in 2021. (This column was updated Wednesday morning, Nov. 24, with pricing news on two more SPACs.)
IPO bankers, meanwhile, will keep busy behind the scenes with SEC filings in preparation for a rousing finish to the year.
Chobani, Inc. (CHO proposed), the Greek yogurt company based in New York, filed its S-1 prospectus last week for what some believe will be a $1.5 billion IPO. The company had filed confidential IPO documents in July. To say that Chobani ‘s IPO is highly anticipated is an understatement.
“It’s a big brand. This one will be hot,” a veteran IPO trader says.
Hamdi Ulukaya, an immigrant from Turkey, founded Chobani in 2005 when he bought a closed factory in upstate New York. The company produced its first cup of yogurt in 2007.
“Five years after we sold our first cup of yogurt, Chobani was a billion-dollar brand,” Ulukaya says in the Chobani prospectus.
On Monday, Nov. 22, one SPAC – Legato Merger Corp. II (LGTOU) – upsized its IPO and priced it before the U.S. stock market opened: 24 million units, up from 20 million units in the prospectus, at $10 each to raise $240 million. The SPAC’s stock and warrants started trading on Monday on the NASDAQ. Legato’s stock closed its first day of trading on Monday at $10.05, up 0.5 percent.
EarlyBirdCapital was the sole book-runner.
Legato Merger Corp. II is the eighth special-purpose acquisition company established and run by Eric S. Rosenfeld and David D. Sgro. This New York-based SPAC intends to focus on target businesses in the infrastructure, engineering and construction (“E&C”), industrial and renewables industries.
8i Acquisition 2 Corp. (LAXXU) priced its small-cap IPO early Monday morning (Nov. 22) in line with the recently increased terms in its prospectus: 7.5 million units (up from 5 million initially) at $10 each to raise $75 million. The SPAC’s stock and warrants started trading Monday (Nov. 22) on the NASDAQ. Shares of 8i Acquisition 2 Corp. closed Monday at $10.12, up 1.2 percent.
Maxim Group LLC was the sole book-runner.
8i Acquisition 2 Corp., based in Singapore, intends to search for a target company in Asia.
Vahanna Tech Edge Acquisition I Corp. (VHNAU) upsized its SPAC IPO at pricing on Monday night (Nov. 22) by selling 17.4 million units – up from 15 million in the prospectus – at $10 each to raise $174 million. The stock and warrants started trading Tuesday (Nov. 23) on the NASDAQ – opening at $10.08 and slipping to $10.07 at midday.
Mizuho Securities is the sole book-runner.
India and tech are in play at Vahanna Tech Edge Acquisition I Corp. The focus will be on tech companies with an enterprise value ranging from US$750 million to over US$1.0 billion. This New York-based SPAC will search for target tech companies with a strong connection to Indian and large addressable market opportunities in India or other developed regions such as the Americas and Europe.
Mana Capital Acquisition Corp. (MAAQU) priced its SPAC IPO on Monday night (Nov. 22) in line with the terms in its prospectus: 6.2 million units at $10 each to raise $62 million. The stock and warrants started trading on Tuesday (Nov. 23) on the NASDAQ. Mana Capital’s stock opened at $10.18 and extended its gains to $10.23 at midday.
Ladenburg Thalmann was the sole book-runner.
Mana Capital Acquisition Corp., based in Dover, Delaware, intends to search for target businesses in North America, Europe and Asia in the healthcare, technology, green economy, and consumer products sectors.
Another two SPACs, also known as blank check companies, priced their IPOs on Tuesday night (Nov. 23): Beard Energy Transition Acquisition Corp. (BRD.U) priced 20 million units at $10 each to raise $200 million, while Everest Consolidator Acquisition Corp. (MNTN.U) priced 15 million units to raise $150 million. Both SPACs are expected to start trading Wednesday (Nov. 24) on the New York Stock Exchange. Citigroup was the sole book-runner of Beard Energy Transition Acquisition Corp.’s IPO. BofA Securities was the sole book-runner of Everest Consolidator Acquisition Corp.’s IPO.
For Thanksgiving week so far, a half-dozen SPAC IPOs have been priced, raising $901 million.
Looking back at last week: A dozen SPAC IPOs were priced, raising $2.34 billion.
Only one micro-cap IPO – Nuvectis Pharma (NVCT proposed) – has been scheduled so far for the week of Nov. 29, 2021. More names are likely to land on the IPO Calendar for next week – and the following week – as more filings flow into the SEC and bankers fine-tune their IPO roadshow plans.
Hanukkah, the Jewish holiday known as the Festival of Lights, is set to begin at sundown on Sunday, Nov. 28, and continue through sundown on Sunday, Dec. 5. So the pace of IPO roadshows and pricings may get off to a slow start early in the week.
More names are likely to land on the IPO Calendar for next week – and the following week – as more filings flow into the SEC and bankers fine-tune their IPO roadshow plans.
Turkey Trot from Coast to Coast
Speaking of turkey trot: This is a Thanksgiving week tradition from coast to coast of 5K runs and walks to bring people together, many in turkey costumes and some pushing babies in strollers, to raise money for charities. Registration closes today (Nov. 22, 2021) for the New York City Turkey Trot Half Marathon 5K, which will take place in Queens on Saturday, Nov. 27th.
In Washington, D.C., the 2021 Trot For Hunger | Washington (runguides.com) will be held right on the holiday – on Thursday. The event will raise money for SOME (So that Others May Eat), a charity that provides food and other assistance to more than 5,000 homeless men, women and children in the nation’s capital.
The Turkey Trot Los Angeles will bring Angelenos out to run or walk a 5K or a 10K on Thanksgiving morning. There’s also a Wobble for kids age 12 and under. The event will raise money for The Midnight Mission, a charity that offers a path to self-sufficiency for the homeless.
“Enjoy a historic course along Spring Street, referred to as the Wall Street of the West,” the Turkey Trot Los Angeles website says.
In Miami, Chicago, San Diego and many other cities, the live Turkey Trot returns this year after last year’s events were cancelled due to the COVID-19 pandemic. Local and national charities, many dedicated to fighting hunger, will benefit from money raised by all of these events. Turkey costumes are optional – just as they seem to be in turkey trots in towns big and small. Some turkey trots are scheduled for the Saturday after Thanksgiving.
To our IPOScoop subscribers and readers: We wish a very Happy Thanksgiving (and safe travels if you’re on the road) to all who celebrate this holiday.
At IPOScoop, we are thankful for your support on this holiday and all year long.
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