US IPO activity fell 59% in the 2nd quarter as SPACs dried up following a regulatory crackdown
IPOactivity fell 59% in the second quarter as the SPAC frenzy cooled sharply in the wake of rule changes.
- The number of
SPACsplunged 87%, raising just $6.8 billion compared with $92.3 billion in the first quarter.
- However, the IPO market remains strong, with more listings in 2021 so far than in the whole of 2020.
The number of companies listing shares on US exchanges for the first time dropped almost 60% in the second quarter, as the boom in special purpose acquisition companies cooled sharply in the wake of a regulatory crackdown.
The decline was more marked within SPAC
Overall, IPOs raised $50.9 billion in the second quarter, down 64% on the previous three-month period. Within that, SPAC IPOs brought in just $6.8 billion, compared with $92.3 billion.
Read more: The CEO of investment bank JMP Securities says once-overexuberant investor sentiment around SPACs has now turned irrationally bearish - and shares 2 undervalued companies he's bullish on for big returns down the line, including one he thinks will jump 80%
Though IPO volumes slid sharply in the second quarter, 2021 so far has already seen more offerings than 2020, which was itself a bumper year.
Public listings have surged in 2020 and 2021, thanks in part to the huge amounts of fiscal and monetary stimulus supporting the
But the numbers have also been driven up sharply by the Wall Street craze for SPACs - blank-check companies that list on the stock market to raise funds to find a target company to merge with.
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