Many freshly De-SPACed companies struggle for foothold after debut
11/01/2022 19:20
** SPACs are losing some of their shine as many firms
launched through blank-check mergers see their shares tumble
** De-SPACed cos Grab GRAB.O and Buzzfeed BZFD.O have
lost nearly half their market value since their public debut
last month urn:newsml:reuters.com:*:nL4N2TM2E3
** Shares of recently listed banking app Dave Inc DAVE.O
plunged 31.7% on Friday, a day after their debut urn:newsml:reuters.com:*:nL1N2TN1WV
** The De-SPAC index .DESPACTR , which tracks the
performance of 25 firms that debuted after a SPAC merger, has
fallen more than 50% from record highs hit last February
urn:newsml:reuters.com:*:nL4N2T137P
** A SPAC is a shell company that raises money in an IPO and
puts funds in a trust with the intent to merge with a private co
and take it public
** Ginkgo Bioworks DNA.N has declined nearly 43.5% since
de-SPACing in Sept, while Cvent CVT.O fell 22.9% since debut
in December
** Not all de-SPACed stocks have underperformed - EV maker
Lucid LCID.O gained 77% since its July debut through a SPAC,
outperforming the 20% drop in peer Rivian RIVN.O that debuted
through a traditional IPO in Nov
** Solar firm Heliogen Inc HLGN.N advanced 61.8% on its
debut on Dec. 31, but has dropped 37% since then
(Reporting by Bansari Mayur Kamdar in Bengaluru)
((BansariMayur.Kamdar@thomsonreuters.com;))