Diving deeply into the digitalization era, modern society often takes for granted the accelerative trajectory of contemporary innovations. But what’s often underappreciated is that the various sources of…
groundbreaking distinction originate from a uniform and redundant platform.
For instance, while you might notice the difference between a PC-driven interface and one from a completely different operating system, at the end of the day, both systems attain their functionality from similar or identical computer codes and hardware architecture. In other words, you don’t need to buy a new computer just to run a different software program.
However, traditional biological processes involve bespoke or highly customized methodologies, thereby ramping up their complexities and costs. But true to the power of innovation, Ginkgo Bioworks, a pioneer in the field of synthetic biology, aims to disrupt this anachronistic paradigm. By increasing the efficiency and speed of biochemical processes in a cell, Ginkgo could dramatically impact any biologics-based enterprise, generating excitement for its recent initial public offering (IPO).
When is the Ginkgo Bioworks IPO Date?
Perhaps the sign of the times, Ginkgo Bioworks — despite its impressive resume and the potential to be one of the most important companies in the world — decided to enter the public market via a reverse merger with a special purpose acquisition company (SPAC).
On Dec. 23, 2020, Soaring Eagle Acquisition Corp. — which previously had the name Spinning Eagle Acquisition Corp. — filed its Form S-1 registration statement with the Securities and Exchange Commission, detailing its proposal to launch an IPO. At the time, the SPAC’s sponsors had a grand scheme to take multiple organizations public. However, on Feb. 11, 2021, the management team abandoned its attempt at a multi-deal SPAC offering, instead aiming for a single-company merger.
Later, a press release from Ginkgo Bioworks on May 11 declared that the synthetic biologics firm and Soaring Eagle agreed to a business combination. On Sept. 14, shareholders of the SPAC agreed to the deal, setting up a date on the IPO calendar of Sept. 17 when Ginkgo shares can trade under its own ticker symbol DNA on the New York Stock Exchange.
Prior to the business combination announcement, Soaring Eagle attracted significant attention from Wall Street. Institutional investors committed $775 million in an oversubscribed private investment in public equity (PIPE) round, featuring anchoring financial support from Baillie Gifford, Putnam Investments and funds and accounts under Counterpoint Global, a Morgan Stanley (NYSE: MS)-owned portfolio. Goldman Sachs (NYSE: GS) represented the underwriters for the offering.
All told, the Soaring Eagle IPO involved the sale of 150 million shares initially priced at $10 per unit. At the time of the business combination announcement, analysts estimated Ginkgo Bioworks at a $15 billion pre-money equity valuation and expected the deal to provide up to $2.5 billion of primary proceeds.
While SPACs stole business headlines across the globe this year, since mid-February 2021, their performance has disappointed relative to benchmark indices. But given the star institutional power backing DNA stock, much hope exists that this particular brand can help right the ship for shell companies in general.
Ginkgo Bioworks Financial History
On Sept. 16 — just 24 hours ahead of the official debut of…
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