Continuing the trend from 2017, SPAC IPOs had another spectacular year in 2018, raising almost $10 billion dollars via 45 IPOs. In 2018, SPAC IPOs accounted for about 15% of the overall U.S. IPO market by deal count and dollar value.
The acronym SPACs stands for special purpose acquisition companies. IPO, of course, refers to initial public offerings. Putting them together, we get an attempt by a newly-formed company, with no business operations, to raise capital on a public stock exchange in order to invest that capital into one or more lucrative projects. The goal of the SPAC’s management ...