SPAC Listing, Sharp Slowdown in U.S., Authorities Strengthen Surveillance
There has been a significant decline in initial public offerings (IPOs) of special purpose acquisition companies (SPACs) in the U.S. (the share of U.S. SPAC procurement in the world’s total IPO has shrunk from 45% to 10%). This is primarily due to the SEC strengthening its surveillance to enforce investor protection and prevent falsehoods in the earnings outlook. However, regular IPOs are excelling—the world’s funding from April to June, excluding SPAC, was at a record high for those months. It’s important to also note that the listing of SPACs outside the U.S. is increasing in Europe. It is expected that the market’s evaluation of SPAC will eventually be fixed.