Blank check investors grow more selective amid SPAC boom

2020’s SPAC mania is showing signs of fatigue. A record-shattering 168 blank check IPOs have raised $57 billion this year, more proceeds than the past 10 years combined. Another 64 SPACs are on file. 

Yet in the past month, 14 SPACs have priced downsized IPOs, and three upcoming offerings have lowered their target deal size. That compares with only five downsized SPAC IPOs during the first nine months of the year, and 13 during all of 2015 through 2019.

Moreover, 24 of the month’s 46 SPACs have broken issue on day one, or 52%, compared to 21% during the rest of the year. SPACs with private equity sponsors appear to be the early victims of the market’s decline in indiscriminate buying...

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