SPAC Daily: Chamath’s IPOD & IPOF Call it Quits

by | Sep 20, 2022

The once self-described SPAC king may be no longer, as Chamath Palihapitiya has decided to close up shop on two of his SPACs rather than extend their lives. Chamath announced today that both Social Capital Hedosophia Holdings Corp. IV (IPOD) and Social Capital Hedosophia Holdings Corp. VI (IPOF) would liquidate and return cash to shareholders without finding a target. IPOD will be returning ~$460M and $1.2B for IPOD.

Common shareholders will all receive ~$10.01 for their shares, or slightly higher than what they were sold for. However, IPOD and IPOF were among the highest speculated SPACs during the retail boom, trading as high as ~$18 purely as a play to back Chamath’s ability to bring a good deal to market. Of course, market conditions have deteriorated rapidly over the last year and almost all SPACs and DeSPACs (we can cut the guy a break) have fallen on hard times.

IPOD shares were once a huge draw for investors

Chamath did file preliminary proxies for extensions, but clearly have decided the correct route, given current conditions, would be to shutter its doors. Chamath is not totally out of the game as two of his biotech focused SPACs, DNAD and DNAB, are still looking for targets. Warrant holders will be left with nothing.

Chamath’s DeSPACs in the IPO Line of SPACs

Performance has faltered in SPAC land

Elsewhere in SPACs

  • North Mountain Merger Corp. (NMMC) will liquidate 9/30 at $10.00 per share
  • FoxWayne Enterprises Acquisition Corp. (FOXW) struck a deal with streaming co. Clover Inc. at a $157M valuation in its second bid to close a SPAC transaction
  • 5:01 Acquisition Corp (FVAM) will liquidate at $10.00 per share on 10/17
  • Digital World Acquisition Corp. (DWAC) shares plummeted -17% today as today was the $1B PIPE deadline

SPAC Calendar

Today’s Movers

Biggest Gainers

4.09% ~ $ 9.17 | CRHC – Cohn Robbins Holdings Corp. (Announced)
1.37% ~ $ 10.33 | HHGC – HHG Capital Corporation (Pre-Deal)
.70% ~ $ 10.14 | IMAQ – International Media Acquisition Corp. (Pre-Deal)
.61% ~ $ 9.82 | SLVR – SILVERspac Inc (Pre-Deal)
.55% ~ $ 10.03 | JGGC – Jaguar Global Growth Corp I (Pre-Deal)
.52% ~ $ 9.70 | JAQC – Jupiter Acquisition Corporation (Pre-Deal)
.51% ~ $ 9.90 | RONI – Rice Acquisition Corp. II (Pre-Deal)
.51% ~ $ 9.94 | VBOC – Viscogliosi Brothers Acquisition Corp (Pre-Deal)
.50% ~ $ 10.10 | CENQ – CENAQ Energy Corp. (Announced)
.50% ~ $ 10.15 | GEEX – Games & Esports Experience Acquisition Corp. (Pre-Deal)
.41% ~ $ 9.83 | HWKZ – Hawks Acquisition Corp (Pre-Deal)
.41% ~ $ 9.84 | LOKM – Live Oak Mobility Acquisition Corp. (Pre-Deal)
.40% ~ $ 10.01 | LSPR – Larkspur Health Acquisition Corp. (Announced)
.40% ~ $ 10.03 | NUBI – Nubia Brand International Corp. (Pre-Deal)
.31% ~ $ 9.72 | SCRM – Screaming Eagle Acquisition Corp. (Pre-Deal)
.31% ~ $ 9.73 | PSPC – Post Holdings Partnering Corporation (Pre-Deal)
.31% ~ $ 9.78 | GFOR – Graf Acquisition Corp. IV (Pre-Deal)
.31% ~ $ 9.81 | TRTL – TortoiseEcofin Acquisition Corp. III (Pre-Deal)
.31% ~ $ 9.82 | GLHA – Glass Houses Acquisition Corp. (Pre-Deal)
.30% ~ $ 9.89 | ROCL – Roth CH Acquisition V Co. (Pre-Deal)

Biggest Losers

-16.92% ~ $ 18.61 | DWAC – Digital World Acquisition Corp. (Announced)
-13.33% ~ $ 6.11 | VTAQ – Ventoux CCM Acquisition Corp. (Announced)
-1.82% ~ $ 9.70 | IMPX – AEA-Bridges Impact Corp (Announced)
-.71% ~ $ 9.83 | FWAC – Fifth Wall Acquisition Corp. III (Pre-Deal)
-.69% ~ $ 10.03 | MURF – Murphy Canyon Acquisition Corp. (Pre-Deal)
-.60% ~ $ 10.00 | ITAQ – Industrial Tech Acquisitions II, Inc. (Pre-Deal)
-.49% ~ $ 10.06 | DSAQ – Direct Selling Acquisition Corp. (Pre-Deal)
-.49% ~ $ 10.11 | FOXW – FoxWayne Enterprises Acquisition Corp. (Announced)
-.41% ~ $ 9.81 | IPAX – Inflection Point Acquisition Corp. (Announced)
-.41% ~ $ 9.81 | GFGD – Growth for Good Acquisition Corp (Pre-Deal)
-.41% ~ $ 9.82 | EMLD – FTAC Emerald Acquisition Corp. (Pre-Deal)
-.40% ~ $ 10.00 | LVAC – LAVA Medtech Acquisition Corp. (Pre-Deal)
-.40% ~ $ 10.07 | HCMA – HCM Acquisition Corp (Pre-Deal)
-.39% ~ $ 10.16 | GACQ – Global Consumer Acquisition Corp. (Announced)
-.35% ~ $ 9.86 | GIIX – GORES HOLDINGS VIII, INC. (Announced)
-.31% ~ $ 9.70 | LOCC – Live Oak Crestview Climate Acquisition Corp. (Pre-Deal)
-.30% ~ $ 9.88 | CLIN – Clean Earth Acquisitions Corp. (Pre-Deal)
-.30% ~ $ 9.89 | ISAA – Iron Spark I Inc. (Announced)
-.30% ~ $ 9.90 | RKTA – Rocket Internet Growth Opportunities Corp. (Pre-Deal)
-.30% ~ $ 9.93 | BOAC – Bluescape Opportunities Acquisition Corp (Pre-Deal)

<a href="https://www.boardroomalpha.com/author/draps/" target="_self">David Drapkin</a>

David Drapkin

Spent his formative years at Goldman Sachs and now embraces the start-up life in NYC. A long suffering Oakland (Las Vegas) Raiders fan and graduate of the Wharton School at the University of Pennsylvania. Semi-professional go-kart racer waiting for his shot.

Know Who Drives Return

Objective, data-driven assessments for every public company director and officer.

SPAC Analytics & Database

Comprehensive research and analytics on every SPAC, sponsor, and deal. Real-time alerts, yields, red flags, filings, investors, and much more. API access to institutional grade SPAC database.

Monthly SPAC Review

SPAC Research & Analysis

SPAC Daily: Court Battles Heat Up

CPTK and FST are set up for court battles related to their failed business combinations, and the rest of the day’s SPAC news.

SPAC Daily: Terminations on the Rise

SPAC Market Review – July 2022Full SPAC ListingPodcast: Know Who Drives ReturnDaily SPAC Newsletter Call it the dog days of SPAC summer, as August has been nasty for pending SPAC mergers. No surprise that mergers are facing tons of obstacles today from the lack of...

Know Who Drives Return Podcast

FOXO Technologies CEO Jon Sabes Is About to Disrupt the Insurance Industry

Boardroom Alpha talks to Jon Sabes, CEO of FOXO Technologies, which announced a SPAC merger with sponsor Delwinds Insurance Acquisition Corp. (DWIN). Sabes explains how epigenetic biomarkers can change the game for life insurance companies and tell us more about health and wellness than ever before.

Disclaimer

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but Boardroom Alpha cannot guarantee its accuracy and completeness, and that of the opinions based thereon. 

This report contains opinions and is provided for informational purposes only – it does not constitute investment, legal or tax advice. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.  

None of the information contained in this report constitutes, or is intended to constitute a recommendation by Boardroom Alpha of any particular security or trading strategy or a determination by BA that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  

No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Boardroom Alpha does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed.