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The first quarter of 2021 saw the highest initial public offering (IPO) activity in U.S. markets in at least 20 years, according to a recent study by Audit Analytics.
There were 407 IPOs, the most in a quarter since 2000, that raised more than $134.6 billion, compared to 38 IPOs that raised $10.1 billion in the same period last year, according to the study. The data is derived from Audit Analytics’ IPO database, which covers IPOs filed with the Securities and Exchange Commission (SEC) since 2000.
In 2021, 14 first-quarter IPOs were more than $1 billion, the research noted.
Driving the surge was the phenomenon of special purpose acquisition companies (SPACs). These blank check companies accounted for 73.2 percent of the IPO activity in the first quarter, according to Audit Analytics. SPACs enable companies to raise capital more quickly through an IPO and use the proceeds to acquire an existing company by merger or acquisition.