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Bryan Bedder/Getty Images for The New York Times

The hottest market in history for special-purpose acquisition companies, or SPACs, appears to be taking a breather. Practically every SPAC on my watchlist is currently trading lower than it was three or four weeks ago. That includes both searching SPACs that have yet to agree a deal with a target company, and those that have already announced mergers but haven’t closed them yet.

SPACs are having a big year in 2020, with 70 completed initial public offerings and another 24 filed to IPO in the near future. Gross proceeds of all those offerings are already at $27.7 billion, according to SPAC Insider. That compares with 2019’s 59 SPAC IPOs that raised a combined $13.6 billion—both annual records at the time.

As the SPAC industry has matured in recent years, the universe of funds and institutional investors who participate in IPO

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