Quarterly number of SPAC IPOs worldwide 2017-2022

The SPAC bubble burst in the second quarter of 2021 after four consecutive quarters of growth, though the number of SPAC IPOs rose to 175 in the fourth quarter of 2021. However, the peak of the SPAC boom was reached when SPACs raised capital in 300 IPOs in the first quarter of 2021. In April 2021, the U.S. Securities and Exchange Commission (SEC) brought in new accounting rules for SPACs, which likely played a role in the drop in new SPAC IPO filings.

What are SPAC IPOs?

A special purpose acquisition company (SPAC) is a corporation formed for the sole purpose of raising investment capital through an initial public offering (IPO). The value of SPAC IPOs globally reached a record-high in February 2021, amounting to over 35 billion U.S. dollars. IPO underwriters are necessary to act as brokers between the issuing company and the investing public, and are usually investment banks. They essentially help the issuing company sell its initial set of shares. As of September 2021, the largest underwriters of SPAC IPOs globally were Citigroup, Goldman Sachs, and Credit Suisse.

SPAC IPOs in the United States

The number of SPAC IPOs in the United States has increased significantly in recent years. As of October 2021, SPACs had raised capital in a record number of IPOs. At the same time, the value of SPAC IPOs raised in the U.S. also peaked - amounting to a value of over 130 billion U.S. dollars. When compared to Europe, the vast majority of global proceeds from SPAC IPOs was raised in the United States.