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US SPACs issuance collapse in 2Q

Special Purpose Acquisition Companies (SPACs) have fuelled IPO issuance on US exchanges over the last twelve months. So far this year, 350 SEC-registered SPAC IPOs have been priced, raising USD 107.6bn. However, SPAC IPO issuance dropped significantly in April, with the bulk of activity occurring in 1Q21.

 

SPAC business combinations have been a major theme of US M&A this year, with 155 deals worth USD 379bn announced in 1H21 alone. Although new issuances have declined in 2Q21, SPACs typically have a 24-month window to complete a transaction, so deals made by SPACs in the US could continue unabated in the coming quarters.

 

 

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