Our monthly SPAC IPO performance review will be out by Monday. We've certainly seen some major drawdowns across the board with very few exceptions.
There's some evidence of the money-raising cycle slowing or coming to an end. A number of SPAC filings from last year have been getting love letters like these from the SEC:
We're also starting to see more liquidations that follow naturally from the consistently high levels of redemptions SPAC deals have undergone.
For example, Burgundy Technology Acquisition $BTAQ completed its liquidation this week for $10.05 in the trust account. That's $345M no longer out there shopping around for a crazy deal.
If this activity continues we should get to a better balance in the market and some of the higher quality SPAC names out there may be in a better position to create some shareholder value.
We are still seeing some deals announced at heady valuations. Just today we had Provident Acquisition $PAQC announce target Perfect $PERF which is kind of an "AI and AR meet beauty and fashion." It's an interesting company that we'll be digging into but the headline number of $1B+ in EV for a company planning to do $42M in sales this year and generate $13M in AdjEBITDA seems expensive. We'll see where it trades if they make it to the De-SPAC in Q3.
I would get excited if these deals started to look cheap on the announcement with some clear upside for equity holders. We are not there yet.