One of the biggest words for investors in 2021 was SPACs. While special purpose acquisition companies have been around for years, 2021 became the year that they took over the market in terms of IPOs and as a topic of conversation.
The SPAC Experts
Benzinga talked about 2021 SPAC deals and news items with Julian Klymochko, founder and CEO of Accelerate, and Nick Gershenhorn from SpacTrack.IO, a leading SPAC data and insights website.SPAC Offerings
Despite over 600 new SPAC offerings in 2021 and a list of hundreds of SPACs looking for deal partners going forward, new offerings might continue to ramp up.“Looks like the brisk pace of issuance will continue in 2022,” Klymochko said.
Gershenhorn sees the number of offerings in 2022 coming in near the record number set in 2021.
Sectors to Watch
Among the most common sectors for SPAC deals in 2021 were electric vehicles, eVTOLs, sports betting and space travel.While those could be sectors that see numerous 2022 SPAC deals, Klymochko thinks another sector will see a lot of deals in 2022. “Crypto and NFTs,” he noted.
SPACs to Watch 2022
SPACs from several high profile sponsors are among the companies that Klymochko is closely watching in 2022.“Looking forward to deal announcements from Churchill Capital and Social Capital,” Klymochko said referencing Churchill Capital Corp VII, Churchill Capital Corp VI, Churchill Capital Corp V, Social Capital Hedosophia Holdings Corp IV, and Social Capital Hedosophia Holdings Corp VI.
An IPO from Panera Brands that will be backed by the SPAC USHG Acquisition Corp. is highlighted by Gershenhorn as one to watch in 2022. HUGS shares have traded over $10 since the deal was announced.
Hottest SPAC Prediction for 2022
The SPAC experts were asked for a hot take to start the new trading year.“The market will reach 1,000 SPACs outstanding (up from 694 currently),” Klymochko said.
Gershenhorn’s hottest SPAC prediction for 2022 is popular NFT collection ‘Bored Ape Yacht Club’ going public via SPAC merger. He said shareholders that don’t redeem their SPAC shares could be rewarded with an NFT airdrop.
“I predict we see more corporate carve-outs and other more creative deal structures like the HUGS/Panera deal, assuming this passes regulatory muster,” Gershenhorn said.