Replies to post #178850 on Enzolytics Inc (ENZC)

[God_Father]

Interesting that this article calls for a valuation 3-5x its IPO proceeds. Things that make you go hmmmm ;)



DOES A $400 MILLION SPAC ACQUIRE A COMPANY THAT IS VALUED AT $400 MILLION (OR LESS)?

No. There is no maximum size of a target company. In fact, it is typical for a SPAC to combine with a company that is 3-5x times its IPO proceeds, which means that the ownership team will ultimately remain as the majority shareholders with the SPAC investors representing a minority (typically 15-30%) of the post-combination entity.

At SCP & CO Healthcare Acquisition Company, we are looking to find a company with an Enterprise Value (EV) between $750 million and $1.5 Billion. This EV is 3.25x to 6.5 times the size of our SPAC, which raised $230 million, including the full exercise of the overallotment shares.

https://www.scpandco.com/how-does-a-spacs-ipo-value-relate-to-its-total-purchasing-power/