SPACs at Four Year Low for IPOs

SPACs, or special purpose acquisition companies, are at a four-year low for initial public offerings (IPOs), according to S&P Global Market Intelligence.

SPACs hit a quarterly high in the number of offerings in Q1 of 2021. For deal amounts, SPACs topped $92 billion that same quarter.

SPAC deals dropped in Q2 from Q1 2023, with 40 new transactions announced compared to 60 in the first quarter. The aggregate disclosed value of SPACs for the second quarter was $890 million.

The report added that around 10 SPACs are nearing their expiration date, having not found a merger partner. Offerings ranged from a valuation of $150 million to $357 million from Conyers Park III Acquisition Corp. It is interesting to note that half of the SPACs nearing their past due date are for Fintech-focused firms.

Obviously, a weak marketplace and economic expectations have impacted the SPAC market. This, combined with a hostile regulatory environment, has placed SPACs in a sleeper hold.

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