Junk SPACs are becoming an issue of concern
Silicon Valley veteran is worried about the proliferation of “junk” SPACs: The meteoric growth in the number of blank check companies going public over the past year has drawn concern that acquired companies and SPAC investors will be harmed as the period of manic speculation comes to an end. The 50-year private equity veteran Sandy Robertson tells the Financial Times “time is running out” for SPACs, as the fundamentals catch up with the over inflated valuations. The SPAC market has already lost a lot of air, with April being the slowest month for new blank-check IPOs since June 2020. Shares in some companies are down 80% and two-thirds are now trading under the standard USD 10 a share IPO price. Need a refresher on SPACs? We’ve got you covered.
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EGX30 |
10,806 |
+0.2% (YTD: -0.4%) |
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USD (CBE) |
Buy 15.63 |
Sell 15.73 |
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USD at CIB |
Buy 15.62 |
Sell 15.72 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
10,373 |
-0.5% (YTD: +19.4%) |
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ADX |
6,519 |
-0.2% (YTD: +29.2%) |
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DFM |
2,711 |
+0.2% (YTD: +8.8%) |
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S&P 500 |
4,116 |
-0.3% (YTD: +9.6%) |
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FTSE 100 |
6,950 |
-1.2% (YTD: +7.6%) |
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Brent crude |
USD 66.61 |
-0.1% |
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Natural gas (Nymex) |
USD 2.96 |
-0.2% |
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Gold |
USD 1,870.80 |
-0.6% |
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BTC |
USD 38,105.08 |
-6.74% |
The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 1.82 bn (31.5% above the 90-day average). Regional investors were net buyers. The index is down -0.4% YTD.
In the green: Qalaa Holdings (+3.4%), MM Group (+3.1%) and Edita (+3.1%).
In the red: Orascom Development Egypt (-2.7%), GB Auto (-2.2%) and Heliopolis Housing (-1.6%).