Well, we all knew that the SPAC market was experiencing a rough patch during the second quarter of 2021, and now we know just how tough things have been. Here’s an excerpt from a CFO Dive article:
The number of IPOs involving special purpose acquisition companies (SPACs) plunged 87% from April through June compared with the first quarter of 2021 as regulators and investors stepped up scrutiny of the blank-check companies. Thirty-nine SPACs raised just $6.8 billion during the second quarter compared with 292 that raised $92.3 billion during the first three months of 2021, according to FactSet. The implosion ends more than a year of record growth — SPAC IPOs accounted for more than half of $67 billion in IPO capital raised in the U.S. in 2020, according to Goldman Sachs.
Yeah, I think that qualifies as a slump — and the regulatory challenges for SPACs continue to mount. Yesterday, the SEC’s Investor Advisory Committee approved recommendations to enhance SPAC disclosure requirements.
Despite all of this, there are still a whole bunch of SPACs out there chasing de-SPAC mergers, so even if the IPO market remains depressed, the story of the SPAC phenomenon still has a few chapters to go.
Speaking of SPACs & SPAC mergers, be sure to tune in to our September 22nd joint webcast with TheCorporateCounsel.net on “Navigating De-SPACs in Heavy Seas” to hear our panel of experts discuss the De-SPAC process and the challenges presented by the current regulatory environment.
-John Jenkins, DealLawyers.com September 10, 2021