Forge Global Stock more than doubled in trading debut

Forge Global Holdings officially debuted as a public company on Tuesday, rising in early trading.

Spencer Platt/Getty Images

Text size


Forge

Global Holdings, a private exchange that just completed its merger with a special-purpose acquisition company, soared about 123% on its first day as a public company.

On Monday, Forge Global completed its combination with


Motivation Capital Corp.
,

a SPAC that went public in December 2020 at $10 per share. Motive Capital has been renamed


Forging global holdings

(ticker: FRGE) and began trading on Tuesday, opening at $11.06 on the New York Stock Exchange.

Shares recently changed hands at $22.53, up from $12.46. the


Dow Jones Industrial Average

increased by 0.6% and the


S&P500

was up 0.9%.

Forge provides a secondary market where investors and employees of highly valued private companies can sell their shares. To buy shares of private companies on Forge, investors must be accredited, generally defined as someone with a net worth of $1 million. Currently, accredited investors on Forge can buy shares of ByteDance, owner of TikTok; Bolt, an online payment company; and Kraken, a small rival to Coinbase (COIN).

With its start strong, Forge is one of the few companies to merge with a SPAC and trade above $10 per share. The majority of SPACs that have closed deals are below $10, Renaissance Capital said.

For example,


PropertyGuru Group

(PGRU), a Southeast Asian real estate technology company, completed its merger with Bridgetown 2 Holdings Limited on Friday. Its shares are down about 21%, at $7.92.


Multiplane

(MPLN), the health services company that partnered with Churchill Capital Corp. III, is down around 60% from its $10 IPO price, while Grab Holdings (GRAB), the food delivery company that merged with Altimeter Growth Corp, is off 62% .

Forge announced its merger with Motive Capital Corp in September. The case, at the time, was valued at $2 billion.

Motive Capital is the blank check arm of Motive Partners, a fintech-focused private equity firm. Motive Capital went public in December 2020, raising $414 million.

This means that Motive Capital is part of the SPAC class of 2020, which refers to approximately 247 blank check companies that went public that year. A SPAC raises funds in an initial public offering with the goal of finding a private company and merging with it. SPACs typically have two years to find and complete a business combination or risk having to return their money to investors. Motive Capital had until Dec. 15 to strike a deal, according to a prospectus.

Write to Luisa Beltran at [email protected]

Comments are closed.