There was no shortage of excitement and drama in the world of SPACs in 2021. The year started with IPOs of hundreds of SPACs in numbers that eclipsed expectations, reports Woodruff Sawyer.
The exuberance in the SPAC market in the first quarter attracted so much attention from investors, media, and regulators that, by April, investors were tapped out, the media’s storyline turned sour, and SEC’s statements around the treatment of warrants brought the market to a halt. IPO activity dropped by 90%, and what many at that time considered a minor hiccup lasted well into the Fall. September and October finally saw increased signs of activity both on the IPO and business combination (de-SPAC) sides of the market. The year finished out with multiple deals pricing, many closing, and a good number of SPACs announcing combinations that should close in early 2022.
Lawsuits also increased dramatically in 2021 as compared to 2020 and previous years. Securities class actions filed in connection with SPAC-related transactions in 2021, for example, jumped by 520% from 2020, according to data collected by Woodruff Sawyer. Read more.
