(Bloomberg) — Grindr LLC, the dating app that specializes in connections for the LGBTQ+ community, became the latest stock to see an eye-popping surge after completing a SPAC tie-up as traders flip shares of the low-float company.
Shares of the company, which went public by merging with Tiga Acquistion Corp., spiked as much as 148% from the price that Tiga closed at on Thursday. The rally came after roughly 98% of investors opted to redeem their stake when they voted to approve the deal, meaning less than 500,000 shares remained outstanding.
The much smaller pool of shares available to trade can drive big swings for the stock, something that has become increasingly common for former SPACs. Grindr’s raucous debut triggered at least five trading halts for volatility as more than 340,000 shares changed hands within the first hour of trading.
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