For the many companies seeking to make their public debut by way of a SPAC merger, growth is often a top priority. One company that has just made such a decision is concerned with growth in more ways than one. Ginkgo Bioworks is a biology company concerned with synthetic growth properties, such as “self-assembly, self-repair, self-replication.” According to a recent announcement, Ginkgo is set to begin trading on the New York Stock Exchange on Friday, Sept. 17 under the symbol DNA – a good reminder for potential investors as to what the company does. So far, this news has only yielded positive results for its partner, if the performance of SRNG stock in today’s market is any indication.
SRNG Stock: What We Can Expect
Ginkgo’s blank-check partner is Soaring Eagle Acquisition (NASDAQ:SRNG). The company reports that the decision to combine forces with Ginkgo was met with overwhelming approval from shareholders, with 75% of the company’s investors participating in the vote, 97% of whom voted in favor of the acquisition.
Once the merger is finalized, Ginkgo expects the gross proceeds to total $1.633 billion. This sum includes a committed $775 million from PIPE investors and roughly $858 million from their new partner’s trust fund.
After the deal received approval yesterday, SRNG stock quickly rallied, rising by as much as 7.87%. It spiked early today and despite some slight declines, the stock is up 1.27% as of this writing.
A Smooth Transition … So Far
Some SPACs do not perform well as their mergers go through the final stages, often due to uncertainty. Support.com for example, plunged by 30% last week as shareholders voted to approve its merger with Greenidge Generation Holdings (NASDAQ:GREE).
So far, though, those holding SRNG stock have had no cause to be anything but optimistic as this deal has unfolded, perhaps indicating that Ginkgo will be a stock that will lend itself well to public trading.
Who Should Care
Companies like Ginkgo that operate in the biotech space have plenty of opportunity for growth. Summer 2021 saw plenty of their public competitors enjoy a season of profitability, such as Avid Bioservices (NASDAQ:CDMO) and BioNTech (NASDAQ:BNTX). This trend was largely due to the demand for vaccines and Covid-19 treatments
Therein lies the interesting factor for Ginkgo. It doesn’t produce vaccines in the way that some more noted companies do. Its work in synthetics, though, lends itself well to the type of biological infrastructure that can help prevent pandemics that the future may hold.
This type of work doesn’t garner the type of media attention that vaccine producers do, but that can sometimes be an asset for investors looking to cash in on the biotech boom. This company is largely undiscovered, but that may be about to change.
The way it looks from here, Ginkgo is a strategic acquisition that will quickly prove an asset to those holding SRNG stock. Mark your calendars for its Sept. 17 debut.
On the date of publication, Samuel O’Brient 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.
