SPACs and hedge funds 4x3

Summary List Placement

There have already been more blank-check IPOs this year than in all of 2020. But the SPAC rush cooled in the second quarter after a frenzy of debuts in the first three months. 

There were 386 SPAC IPOs worldwide in the first half of 2021, according to Refinitiv data. That topped last year’s 256 IPOs, which had been a record high. Much of the 2021 activity was in the first quarter, which had 258 global SPAC IPOs. 

In 2021, SPACs have notched $110 billion in issuance worldwide, according to Refinitiv data, likewise eclipsing last year’s total of $79.3 billion. Total issuance in 2019 was just $14.7 billion. 

SPACs raise capital and go public without any revenue or operating assets. They then typically have two years to deploy that capital by buying a private company and taking it public via the deal.

SPACs exploded in popularity thanks to investor demand to get in early on companies promising big growth and a desire among companies for a way to go public through a more streamlined process than a typical IPO.

The Securities and Exchange Commission has been looking to rein in growth projections that listed SPACs make. On Tuesday, the SEC announced …read more

Source:: Businessinsider – Finance


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