The popularity of Special Purpose Acquisition Company (SPAC) initial public offerings (IPOs) continued their strong upward trajectory in the first quarter of 2020, with thirteen IPOs completed, according to data from Bloomberg Law.
That represents nearly 30% of all IPOs—by a class of fundraising that once carried a strong stigma after numerous instances of fraud against investors. Are SPACs now normalized? The fact is, levels of interest in SPACs in the first quarter matched those of life sciences, a component of consumer, non-cyclicals comprised of biotech, pharmaceutical, and health care companies.
SPACs are blank check or shell corporations that raise ...