Stock photo giant, Getty Images Holdings Inc. GETY went public on Monday, following its merger with special-purpose acquisition company (SPAC) CC Neuberger Principal Holdings (CCNB).
On Friday, shares of the new publicly traded company soared more than 150% after it was revealed that 99.4% of the company’s float was redeemed by shareholders at an average price of $10.03 — shares are trading around $26 right now.
Of the 82.8 million shares available, some 82.3 million of them were redeemed by CCNB shareholders — leaving about 508,000 available to the public.
How did that happen? A feature of the SPAC structure is that shareholders have a week before the SPAC reverse merger transaction closes to choose to redeem their shares.
Investors have the option to redeem their shares prior to the business combination for a pro-rata share of the cash in the trust account because the SPAC itself has no business operations and the target firm is unknown at the time of the IPO.
A shareholder may decide to exchange shares for the roughly $10 per share held in trust from the SPAC’s first IPO at the redemption date. Due to interest accrued on the funds kept in trust, the price can be a few cents higher than $10 per share, as it is in this case at $10.03.
At the present share price, the 508,000 shares that are available to the public are worth about $13.8 million.
In 2021, Getty earned just $0.13 per share on revenues of $918 million.
Getty went public with a valuation of $4.8 billion. At current share prices, the company is worth around $2.3 billion.
Image and article originally from www.benzinga.com. Read the original article here.