Will SPACs survive the excesses of 2021 as a useful fundraising tool, or just another chapter in the history of regulatory arbitrage? London’s surprisingly robust market helps provide an answer, The Wall Street Journal reports.
Most investors and companies have turned their backs on SPACs, which were once Wall Street’s hottest trend. In a recent example, space logistics company D-Orbit canceled a deal. Vehicle shareholders are in many cases exercising their right to get their money back. The U.S. rout was mirrored in the smaller European market, where 60% fewer SPACs were listed between January and August compared to a year earlier, according to Dealogic data.
Yet London is an exception. In March and April, as markets tanked, it hosted two high-profile listings that raised a combined £325 million, equivalent to around $377 million: New Energy One Acquisition Corporation, an energy-transition vehicle backed by Italian oil major Eni, and Financials Acquisition Corp, which finance veterans William Allen and Andrew Rear are using to scout promising “insurtech” ventures. Read more.
