DJ Ten New SPACs Launch Friday
By Amrith Ramkumar
A flurry of activity in special-purpose acquisition companies continues on Friday with the launch of 10 new blank-check firms, according to data provider SPAC Research.
SPACs are shell companies that list on an exchange to acquire a private firm, typically a startup, and take it public. The startup then takes the SPAC's place in the stock market.
Blank-check companies have become a popular way for financiers to earn huge returns and early stage companies to access public investors (https://www.wsj.com/articles/when-spacs-attack-a-new-force-is-invading-wall-street-11611378007) who are excited about themes like electric cars.
With today's new SPACs, 116 have launched in 2021 and raised $35 billion, putting the market on track to soar past last year's record above $80 billion, per SPAC Research.
That also means there are now 315 SPACs searching for private companies to acquire in the next two years--the typical deadline for blank-check firms to do a deal. That trend is inflating startup valuations.
Another celebrity is also seeking to join the frenzy. A blank-check firm backed by baseball legend Alex Rodriguez said on Thursday it plans to raise $500 million. Mr. Rodriguez joins big names like former basketball player Shaquille O'Neal, former House Speaker Ryan and former Cosmopolitan Editor Joanna Coles in launching SPACs.
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February 05, 2021 09:47 ET (14:47 GMT)
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