Hypebeast finds SPAC shortcut to dual listing

Hypebeast

04/04/2022 16:42

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Robert Cyran
    NEW YORK, April 4 (Reuters Breakingviews) - The Hong
Kong-listed lifestyle, advertising and e-commerce firm is
selling a stake to a blank-check vehicle, thereby collecting a
U.S. listing as well. The implied valuation, despite being at a
premium, is sober by SPAC standards. The novelty is involving
two stock exchanges.
    Full view will be published shortly.
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    CONTEXT NEWS 
    - Hypebeast, a Hong Kong-listed digital media and e-commerce
company, will merge with Iron Spark I, a special-purpose
acquisition company, the companies said on April 4. The deal
will result in the company's shares being listed both in Hong
Kong and on the Nasdaq market.
    - The $534 million equity value implied for Hypebeast after
the transaction represents a 41% premium to Hypebeast’s closing
stock price on April 1, the last day of trading prior to the
announcement. To facilitate the deal at the typical SPAC stock
price of $10, Hypebeast will consolidate its existing stock,
combining 68.45 current shares into one new share.
   - Hypebeast is projected to raise $180 million in proceeds,
with $167 million coming from Iron Spark and $13 million from a
so-called private investment in public equity. Among those
investing in the PIPE are professional American football
quarterback Tom Brady, tennis champion Naomi Osaka, basketball
star Kevin Durant, skateboarder Tony Hawk, Airbnb co-founder Joe
Gebbia and others.
    - Hypebeast expects to generate at least $112 million of
revenue for the fiscal year ending March 31, up 29% from the
previous year.

 (Editing by Richard Beales and Sharon Lam)
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