5 SPACs To Watch In The Second Half

Lucid Motors, Southeast Asia's Grab, and Lottery.com are among the companies that have deals lined up.
Vincent RyanJune 29, 2021

As the close of the first half of 2021 nears, investors have a chance to look at some companies that could have big moves in the second half of 2021.

Here is a look at five SPACs to watch in the second half.

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Churchill Capital Corp IV

Electric vehicle company Lucid Motors is merging with Churchill Capital Corp IV in a deal that has been one of the most discussed of its kind. The deal valued Lucid Motors at $24 billion based on a pricing of $15 for the private investment in public equity (PIPE) on the deal.

Lucid Motors is set to launch the Lucid Air sedan in the second half of 2021. There were over 7,500 reservations of the Lucid Air in February representing $650 million in sales for Lucid Motors.

The company’s production capabilities are 34,000 units annually, with expansion plans that would take the company to 365,000 units annually. Announced future models include the Lucid Gravity SUV in 2023 and plans for more sedans and SUVs in the future.

Lucid Motors has not announced a date for the merger vote.

Altimeter Growth

The large Southeast Asian delivery, mobility, and financial services company Grab announced a SPAC deal with Altimeter Growth in one of the largest offerings for a company from the region in the United States.

Grab is the category leader for online food delivery, ride-hail, and digital wallets in Southeast Asia. The company had gross merchandising value of $12.5 billion in 2020, which came in ahead of pre-pandemic levels.

Over 670 million people live in Southeast Asia, which could give Grab a significant runway for future growth in its existing and new segments. Online food delivery penetration and digital wallets are smaller in market size in Asia than in regions like the U.S.

The deal is expected to be completed in the later part of 2021.

Chamath SPACs

One of the top names in the SPAC world still has two SPACs searching for targets. Chamath Palihapitiya’s Social Capital Hedosophia Holdings (IPOD) and Social Capital Hedosophia Holdings VI (IPOF) are SPACs that could perform well in the second half of 2021.

IPOD has no rumors attached to it, while IPOF is rumored to be bringing gym owner and Peloton Interactive rival Equinox public.

IPOD raised $400 million and has the former CEO and co-founder of NextDoor to help pick a target.

Dick Costolo, the former CEO of Twitter from 2010 to 2015, is helping the $1-billion IPOF select a target.

Palihapitiya recently filed for four biotech SPACs. That could mean deals are close to being announced for IPOD and IPOF — or he could have six active SPACs searching for targets later this year.

Trident Acquisitions

One trend that has played out for SPACs in 2021 is that some well-known brands or companies trade better when they have the new name and ticker.

The same could happen for Lottery.com, which is merging with Trident Acquisitions and will trade under new ticker LTRY.

Lottery.com has facilities in 12 states and plans to add six more in 2021, CEO Tony DiMatteo told Benzinga.

A potential catalyst for the company is its acquisition of the sports.com domain and intentions to enter the sports betting market. DraftKings CEO Jason Robins serves on the company’s advisory board.

This story originally appeared on Benzinga. © 2021 Benzinga.com.

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