SPACs Fueling Over $38B in IPO’s for Commercial Transportation
April 23, 2021
Purpose Acquisition Companies (SPACs) have been growing exponentially, annually
over the last two years. According to ABI Research more than US$38 billion in
pro forma equity valuations were attributed to the commercial vehicle space. All
those IPO’s focused on strategic technologies for last mile, automation, and/or
“Multiple manufacturers from Nikola to Proterra, Lordstown, Lion Electric, Hyzon
Motors, Einride, and Plus require significant capital to enable full production,
with investors ramping up SPAC’s and joining in bidding wars in some cases,”
states Susan Beardslee, Freight Transportation, and Logistics Principal Analyst
at ABI Research.
like Electric Last Mile Solutions and Arrival have solutions that support the
rapidly growing e-commerce delivery segment, with ABI Research expecting
associated telematics hardware shipments to grow by 29% over the next five
years. Related SPACs in the supply chain industry are expected to reach a
minimum of US$15.2 billion this year.
“Despite the excitement, investors need to approach with caution as celebrities
enter the SPAC frenzy and some previously lauded SPACs have been investigated
and/or have seen their values dip post IPO. Continued focus on transportation,
logistics, and the supply chain will bring new, exciting IPO’s although not all
will take the SPAC path,” Beardslee says.