Wall Street's SPAC craze scales new heights with record filings
Reuters
Published Feb 12, 2021 06:52PM ET
(Reuters) - Richard Branson and Barry Sternlicht were among more than two dozen investor groups that filed with U.S. regulators on Friday to raise new blank-check acquisition companies, setting a new record.
The 28 filings for new special purpose acquisition companies (SPACs) underscore their growing appeal on Wall Street. SPACs raised a record $82 billion last year, and the trend has gathered further steam in the early weeks of 2021.
Overall, 144 SPACs have raised $45.7 billion so far this year, according to data from SPAC Research, with backers including high-profile investors, politicians and sports personalities.
Starwood Capital Group's CEO Barry Sternlicht's Jaws Juggernaut Acquisition Corp filed for an IPO of up to $200 million on Friday. Other notable investors that launched SPACS included serial entrepreneur and billionaire Richard Branson and former BuzzFeed Chairman Ken Lerer.
Friday's filings count more than doubled a previous record of 13 deals on Feb. 5, SPAC Research said.
A SPAC is a shell company that raises money in an IPO to merge with a privately held company that then becomes publicly traded as a result.
SPACs have emerged as a popular IPO alternative for companies, providing a path to going public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.