Webull to Go Public via SPAC Merger

In a strategic move to go public, digital brokerage platform Webull has sealed a deal to merge with a special-purpose acquisition company (SPAC).

• Merger Details: Webull will combine forces with SK Growth Opportunities, a Nasdaq-listed entity trading under the ticker SKGR. Upon finalization, the merged entity will adopt the Webull name and continue trading on the Nasdaq, albeit under a new ticker expected to debut around September, as confirmed by Webull Group President Anthony Denier.
• Financial Implications: The merger is projected to raise approximately $100 million and attributes a valuation of roughly $7 billion to Webull. Denier revealed that the capital infusion from this deal will fuel Webull’s global expansion initiatives and facilitate the introduction of new product offerings.
• Strategic Choice: While Webull had contemplated an initial public offering (IPO) in the past, it ultimately opted for the SPAC route due to perceived certainty. Denier highlighted the SPAC’s ability to provide a more predictable path to public listing compared to the traditional IPO process.
• SPAC Landscape: SPACs, colloquially known as blank-check companies, experienced a surge in fundraising activity between 2020 and 2021, with over 860 SPACs collectively raising more than $200 billion during this period, according to data from SPACInsider. However, the momentum slowed in 2022, with fewer deals and reduced fundraising volumes.
• Webull’s Growth Trajectory: Since its inception in 2018, Webull has seen remarkable growth, particularly in 2021, when it gained prominence amid the retail trading frenzy surrounding meme stocks like GameStop. With operations expanded to Asia, Europe, and Latin America, Webull boasts a global user base of approximately 20 million registered users. Impressively, the company has reported profitability for eight consecutive quarters.
• Content Partnership: Webull has solidified its market presence through a content partnership with Dow Jones, the publisher of The Wall Street Journal.

This merger marks a significant milestone in Webull’s journey, positioning the company for continued growth and market leadership in the digital brokerage space.