Editor’s note: This article was updated on Sept. 14 to correct the name of the company merging with Motive Capital.
Investors interested in the rise of private investing have looked to various venture capital and off-market firms to facilitate such exposure. One such company that offers an online marketplace for investors to buy and sell shares of private companies is Forge Global. Recently, Forge Global announced it would be merging with Motive Capital (NYSE:MOTV). Indeed, this Forge Global special purpose acquisition company (SPAC) merger has raised a tremendous amount of interest in MOTV stock of late.
That said, MOTV stock is currently trading only slightly higher today along with the market. It appears investors in the SPAC sector remain in bear mode. However, this deal certainly is intriguing from a number of angles.
Indeed, the ability to bet on pre-IPO (initial public offering) shares is something aggressive growth investors have been gravitating toward. Of course, with the decline we’ve seen in SPACs in recent months, perhaps the momentum isn’t there in this sector right now. However, many investors may view now as a great time to get into companies like Forge Global, when they’re on the cheap.
Let’s dive into what this merger entails and why investors may want to pay attention to MOTV stock right now.
MOTV Stock Higher on Announced Forge Global SPAC Merger
The announced merger between Motive and Forge Global is the latest in a string of announced SPAC IPO deals this year. While various issues relating to redemptions and lower overall interest in SPACs persist, this deal has generated much interest today.
This $2 billion SPAC merger stands to be one of the biggest to be announced in recent weeks. This is also the first SPAC for a dedicated trading platform targeting private equity ownership. Accordingly, investors may be enticed to grab a slice of history via MOTV stock.
As a result of the deal, Forge expects to bring in around $500 million in gross proceeds. This capital includes a $120 million PIPE (private investment in public equity), from the likes of ION Investment Group. The company will likely look to use the funds to finance its growth as investor interest in private equity options surges.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.