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IPO Roundup: Silver Spike has blank check for cannabis, while Impossible Foods, Ping Identity also plan to tap markets

Silver Spike Acquisition raised $250 million, while investors jostle for a pre-IPO stake in Impossible Foods

Goldman Sachs - IPO Roundup: The market hands cannabis a blank check, while Impossible Foods, Ping Identity, Saudi Aramco plan to tap capital markets
Silver Spike Acquisition Corp is laser-focused on the burgeoning legal cannabis industry

Silver Spike Acquisition Corp (NASDAQ:SSPKU), a blank check company, said it raised $250 million to invest in the cannabis industry by selling 25 million shares at $10 per share.

In a statement, Silver Spike said it intends to focus on businesses in the cannabis industry that are compliant with laws within the jurisdictions in which they operate.

IPO Roundup: Financial institutions from Kansas and China each make their public debut

The management team is made up of veteran cannabis and finance industry executives. In 2016, Silver Spike Acquisition founder CEO Scott Gordon became chairman of cannabis-focused Egg Rock Holdings which has interests in the Papa & Barkley line of cannabis products linked to manufacturing, processing and logistics.

Ping Identity Holding

Ping Identity Holding (NASDAQ:PING), an online identity management company filed an S-1 form indicating it plans to raise up to $100 million in an initial public offering.

The Denver, Colorado company was acquired by Vista in 2016 for about $600 million — at a time when a clutch of enterprise companies that looked like strong IPO candidates were going down the private equity route and staying private instead.

Ping is said to be looking at a valuation of between $2 billion and $3 billion in this listing. The company’s S-1 form gives investors a peek into Ping’s financials, indicating that it’s currently unprofitable but on a steady growth curve. For the six months ended June, Ping posted revenue of $112.9 million, compared to $99.5 million in the same period a year earlier. The firm posted a net loss of $3.1 million in the first six months of the year, compared to a much higher loss of $5.8 million in the same period in the previous year.

Impossible Foods Inc

Investors are rushing to get a piece of Redwood City, California-based plant alternative meats producer Impossible Foods Inc before it goes public, anticipating that its debut will draw market interest similar to that of rival Beyond Meat Inc (NASDAQ:BYND).

Brokers handling transactions in the secondary market told the Wall Street Journal that investors are jostling to get a piece of the maker of plant-based meats, with some deals that value the company as much as $5 billion. That valuation is still well below rival Beyond Meat’s market value of $9.2 billion.

Both Impossible Foods and Beyond Meats sell products that look and taste like meat but are actually plant based. Their products are meant to appeal to omnivores who are looking to reduce their meat intake. The Journal reported that in April, Impossible foods inked a deal with Burger King, and doubled the head count at its Oakland manufacturing plant to keep up with demand for its plant-based burgers.

Manhattan Venture Partners and others have been investing in Impossible Foods through special-purpose vehicles approved by the company.

Saudi Aramco

Meanwhile, on an even bigger front, top officials from the exchanges in London, New York and Hong Kong have been actively pitching oil giant Saudi Aramco in recent weeks as the battle to host the world’s largest-ever initial public offering heats up again, Bloomberg News reported.

The initial public offering was reportedly postponed following an inability to achieve the $2 trillion valuation for the oil group sought by Saudi Arabia’s King and his heir, Crown Prince Mohammed bin Salman.

According to the Financial Times, Goldman Sachs has clawed its way into contention for a role in Saudi Aramco’s planned $100 billion listing, after a months-long charm offensive by top executives, including former Trump administration official Dina Powell, an Egypt-born Arabic speaker.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

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