Market history · Equities ·
The SPAC boom
Special-purpose acquisition companies raised record sums in 2021, with more than 600 SPAC listings in the US. The vehicles let private companies go public with less traditional scrutiny and with forecasts that conventional IPOs do not usually publish.
Many de-SPACed companies later traded far below their $10 listing price, and regulators tightened disclosure rules. Issuance fell sharply from 2022.
The takeaway
When a financing route becomes fashionable, the average quality of what comes through it tends to fall.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.