SPAC Issuance Slows

Early in the year, SPACs were all the rage as a way to sidestep the IPO process. In January, 97 SPACs went public compared to 27 IPOs.  In July, there were only 32 SPACs compared to 57 IPOs. In fact, many SPAC investors are selling their shares or redeeming shares when a deal is announced. Reasons for the slowdown in SPACs are increased SEC scrutiny and the fact that 438 SPACs that had raised over $130 billion combined have yet to find a merger partner. Additionally, as Jay Ritter from the University of Florida notes, 94 of 131 SPACs that have announced mergers since October 2020 are trading below the initial $10 price.