Webull is set to make its public debut by merging with a special purpose acquisition company, valuing the digital investing platform at $7.3 billion.
The New York-based online brokerage will join forces with SK Growth Opportunities Corporation in the latter half of the year, subject to regulatory and shareholder approvals. Upon completion, the merged entity will be publicly listed on Nasdaq as Webull under a new ticker symbol.
Special purpose acquisition companies, commonly known as SPACs, initiate capital accumulation through an initial public offering, leveraging these funds to facilitate mergers with private enterprises, thereby enabling them to go public within a typical timeframe of two years.
Following a sluggish period in recent years, the SPAC arena is witnessing a resurgence, buoyed by the ongoing bull market momentum and a stabilization in interest rates.
Having debuted its trading platform in the U.S. in 2018, Webull experienced a significant surge in activity during the COVID-19 pandemic, as many individuals turned to trading amid lockdowns. The firm reported $370 billion in equity notional volumes and 430 million options contracts traded through its platform in 2023.
In contrast to its rival Robinhood, Webull’s clientele tends to comprise more proactive and sophisticated investors, who utilize analytical tools like charting to inform their trading decisions, noted CEO Anthony Denier in a 2021 CNBC interview.
