ANALYSIS: IPOs Fall to Earth; a Requiem for SPACs?

The IPO market bubble has burst, with SPAC IPOs taking the worst of it. Both traditional and SPAC IPOs have suffered gut punches from inflation, rising interest rates, market volatility, geopolitical instability, and a growing recession risk.

IPOs have long enjoyed public support from the SEC, but SPACs and their IPOs have regulators threatening to knock the industry down—and possibly keep it down. That threat was a hot topic at last month’s SPAC Conference 2022.

Back to Reality for IPOs

Like the broader stock market, the IPO market has retrenched. The number of traditional IPOs fell nearly 72%—from 249 IPOs ...