Worst yr in a minimum of a century. No motive to not go public

Amid all the horror and turmoil around it and the howling incompetence and venality that, if not spawned, have certainly exacerbated it by several orders of magnitude, as well as the undeniable shrinking of the economy that is at least nominally blamed for it is undeniable that the stock market continues to rise while breaking new records with COVID-19 infections, hospitalizations and deaths. So it’s no wonder that records are being set to get companies public.

The frenzy is perhaps best reflected in the frothy bubbling market for blank check companies that has reached a new and threatening milestone.

JPMorgan Chase & Co.’s Highbridge Capital Management is in talks to raise at least $ 1 billion for a strategy focused on investing in special-purpose acquisition companies and related financial instruments. Including leverage, Highbridge expects an increase of $ 2-3 billion, which it may hold an initial close as early as the first quarter of 2021. “We believe that SPAC’s record spending in 2020 has the potential for near-term transaction value of more than $ 100 billion,” the company said in a presentation about the vehicle known as the Highbridge SPAC Opportunities Fund and from Bloomberg Was seen. “This level of activity has created several asymmetrical trading opportunities.”

That’s right, a fund from SPACs! And, you wouldn’t know, here is another asymmetrical trading way to do it.

A blank check company backed by former Allergan PLC CEO Brent Saunders is set to merge with a private equity-backed health and beauty company valued at $ 1.1 billion. As part of the transaction, a group of institutional investors, including Fidelity Management & Research Co., Redmile Group LLC, Principal Global Investors LLC, Camber Capital Management LP and Woodline Partners Ltd. include $ 350 million in private common stock upon purchase.

But just because Jamie Dimon canceled Christmas for those of his bankers drowning under SPAC prospectuses doesn’t mean the old way of fundraising has been quarantined. Far from it: Despite all of the problems associated with going public that make a reverse merger with a SPAC so appealing to those who aren’t interested in defying investor scrutiny before going public. One fashionable way of doing things is to set your own records, even with companies whose fundamentals may have made them better suited to a SPAC marriage.

DoorDash, the grocery delivery company that has seen soaring demand during the coronavirus pandemic, sold shares on its initial public offering at $ 102 a piece, up on price, according to people familiar with the matter. The company had previously announced it would sell shares between $ 90 and $ 95.

It could be one of the biggest US tech IPOs of the year, however [New Constructs CEO David] Trainer called it “the most ridiculous IPO of 2020 …”.

“We believe this proposed public equity offering has no value of $ 0, except that private investors will be bailed out before unsuspecting public investors realize that the deal is not profitable in its current form,” he said in one E-mail.

Nevertheless it goes on …

Airbnb Inc. is expected to value its shares above its already raised target range. Earlier this week, the target range was raised to $ 56-60 per share as investors express their excitement for the stock at a price above that range and the stock market continues on its uptrend. The San Francisco home rental startup is expected to set a price for its IPO on Wednesday before making a trading debut on Thursday.

And further …

Robinhood Markets Inc stock trading app has selected Goldman Sachs Group Inc to lead preparations for an initial public offering (IPO) that could take place next year and be valued at more than $ 20 billion.

The app’s popularity is often cited by market experts as a driver of volatility in stock trading this year, from large-cap companies to stocks of companies that have gone bankrupt. The appetite for new stocks was fueled by a combination of low interest rates. the printing of money by the US Federal Reserve and an acceleration in technology trends due to the pandemic.

Isn’t that almost as incestuous as Dyal Capital’s plan to team up with its own SPAC and parts of itself at the same time? I think if you can’t join them, you might as well book a run for them and help them get the money they need to avoid further embarrassment.

JPMorgans Highbridge Capital seeks $ 1 billion to bet on SPACs [Bloomberg]
Former Allergan CEO’s SPAC agrees to merge with Beauty Products Company for $ 1.1 billion [WSJ]
DoorDash is selling shares at an IPO of $ 102, with the price above the range [CNBC]
DoorDash is “the most ridiculous IPO of 2020” and has no more value than rescuing private investors, says a seasoned equity analyst [BI]
Airbnb is expected to go public for about $ 56 to $ 60 per share range [WSJ]
Trading app Robinhood hires Goldman Sachs to manage IPO sources [Reuters]

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