Advantages of SPACs Over Traditional IPOs
Background: How did we get here?
• SPACS have been around for decades, but have grown in size, as have the
prominence of the Sponsors and underwriters, in recent years.
• SPACS became more popular starting in 2017, when 34 SPAC IPOs raised
more than $10 billion.
Before 2017, the most SPAC IPOS in one year since 2009 had been 20, raising an
aggregate $3.9 billion.
• In 2020, 237 SPAC IPOS raised approximately $80 billion.1
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2019: 59 SPAC IPOS raised $13.5 billion.2
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Q1 2021: Over 300 SPAC IPOs raised more than $88 billion.3
• SPACS can list on either Nasdaq or NYSE.
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Historically, most SPACS have listed on the Nasdaq because NYSE listing rules were
more restrictive, but NYSE rules have recently changed.
1.
Source: "2020 Has Been the Year of SPAC IPOs: Here Are the Prominent 4, " NASDAQ (Dec. 28, 2020)
2.
Source: Tomio Geron, "SPACs Offer Quick Exits for Venture Firms, but Potential Perils as Well," The Wall Street Journal (Oct. 30, 2020).
3.
Morgan Lewis
Source: "Q1 2021 Global Capital Markets Activity: SPAC IPOS, Issuance in Consumer Discretionary Sector Surge," S&P Global (May 3, 2021)
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