U S SPACs overtake 2020 haul in less than three months yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
(Reuters) - Wall Street thought 2020 was a frenetic year for special purpose acquisition companies (SPACs).
FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri
Yet with more than nine months to go until the end of 2021, initial public offerings (IPOs) of U.S. SPACs this week surpassed the $83.4 billion the sector raised in all of 2020, data from industry tracker SPAC Research showed.
This is also more than the $29.5 billion that IPOs of companies that operate businesses - as opposed to being empty shells like SPACs - have raised since the start of the year, according to IPOScoop data.
U S SPACs overtake 2020 haul in less than three months reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
How financing SPAC takeovers became Wall Street’s new favorite trade CNBC 1/25/2021 Leslie Picker
PIPEs, increasingly deployed in conjunction with red hot SPACs, are mechanisms for companies to raise capital from a select group of investors outside the market.
Bankers from several firms have told CNBC they ve received an uptick in inbound interest recently from investors looking for future PIPE opportunities.
In 2020, PIPEs generated $12.4 billion in supplemental capital to help fund 46 SPAC mergers, according to data pulled by Morgan Stanley.
The heightened prevalence of this product is raising concerns about the potential lack of understanding among the broader cohort of SPAC investors about how these investments work.