Investors are holding back one of Wall Street’s most popular bets, as new regulatory control of special-purpose acquisition companies reduces the flood of new emissions while stock prices fall.
SPACs have raised about $ 100 billion so far this year, more than last year’s record $ 83.4 billion, which is above the amount raised in the nearly 30-year history of these companies. of blank checks.
The market hit another record on Tuesday, when Grab Holdings Inc., the Southeast Asian group for travel, food delivery and digital wallets, said it would go public through a SPAC deal with a close valuation of $ 40 billion.
Critical comments from regulators seem to scare some investors and new offers. Until last month, approximately five new SPACs entered the stock market every business day in 2021. In the last 14 days, 12 new SPACs have started trading, according to data from SPAC Research.
The slowdown occurs as other assets, such as stocks and cryptocurrencies, are in or with almost no records. SPACs are one of the worst results on the market lately.