SPAC Issuers Churn Out New IPOs Despite Blank-Check Tumbles
- Industry is on course for more than 260 offerings this year
- Role of SPACs as a bond alternative has made deals attractive
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Banks and sponsors are pumping out new blank-check firms even as the market for old ones is in free-fall.
Forty-four special-purpose acquisition companies have priced their initial public offerings this year, data compiled by Bloomberg show, despite a 40% drop for a key industry index from its February 2021 peak and a glut of firms looking for targets. If the pace keeps up, this year could see about 264 IPOs, a far cry from last year’s record of more than 600, but still more than 2020’s hefty count of 248.