Arrival said on Wednesday it had reached a deal to merge with CIIG Merger Corp. (CIIC), one of the many “special purpose acquisition companies” — or SPACs — that have proliferated in the US over the last 12 months. SPACs are shell companies, also known as “blank cheque” companies, that are capitalised and looking for deals to acquire businesses as a means to help them go public.
Arrival will be valued at $5.4bn (£4bn) once the transaction closes, the company said in a statement. The startup will raise $660m through the deal. CIIG has tapped investors Fidelity, Wellington, and BNP Paribas (BNP.PA) for an additional $400m to help fund the transaction.
That is why I have most of my Investments with T212. I bought at $10.50. Already would have lost 35% so far with them slow at adding new stocks. Otherwise I would be keen to use the platform.
I bought yesterday via interactive investor, but as trading was halted before the market opened I missed the sub $11 prices… did you buy Tuesday evening? Or do T212 allow pre market buying?
Either way, it closed at $16.40 so also well in profit already and should have a long long way to run given their superiority to all of the recent EV SPAC listings! Did you read the article about them potentially building a microfactory in Moscow to build / supply the entire Moscow bus fleet?!
The question for Freeetrade is why they can’t have all US SPAC’s lined up ready to plug in as soon as they announce a merger? Interactive were in that position and got it live in a couple of hours…
I assume the team at Freetrade will be working flat out this morning to get this onboarded before the US markets open today? If they’re not working on this something is wrong @Viktor
With the current SPAC craze, there should be someone at Freetrade who is specifically responsible for ensuring they are up to date with potential listings. Most SPAC’s that haven’t found a merger target yet should be on the radar & ready to make live as soon as they make an announcement. Otherwise it’s self inflicted damage and pisses off users. I don’t like T212 and would never have any intention of using them, but if I’d known they had this listed on Tuesday evening I would have strongly considered opening an account.
Yeah I agree with you on having a dedicated team/individual for SPACs. It is a shame they aren’t working on them faster at the moment but I am sure they’re working on other things to improve Freetrade.
On Valuation, the deal agreed corresponded to ~$5.5bn Valuation with the share price of CIIC at ~$10, with the price around $15 in pre market youd be paying close to $8bn.
They have $5.1b of revenue forecast for 2023 & $14.1b of revenue forecast for 2024. EBITDA forecast to be $3.2b in 2024. They already have a $1.2b order from UPS for 20,000 vans. In my opinion $8b market cap is cheap based on those metrics. And that’s just based on vans & buses, wait until they launch taxis.
