This year’s numbers dwarf those in previous years, CNBC reports. SPAcs raised more money in January than all of 2020. In 2019, $13.6 billion was raised through SPACs. In 2018 and 2017, they collected $10.7 billion and $10 billion, respectively.
The big question this year is how a change to the New York Stock Exchange’s direct listing rules will impact the IPO market.
Approved by the SEC in December, the new rule allows companies to raise fresh capital through direct listings as opposed to just selling existing shares. Under the change, companies can raise cash from retail investors as well as by selling existing shares of the company. Making direct listings more attractive could cut demand for a SPAC or traditional initial public offerings. Read more.
