Wednesday, October 21, 2020

SPACs, target companies are left behind as U.S. IPOs rise

U.S. companies along an alternative route to going public are being left by the wayside. The IPOX SPAC Index, tracking special-purpose acquisition companies and the businesses they make deals with, shows as much. The index retreated 8.4% through Tuesday from a peak on Sept. 18, according to data compiled by Bloomberg. Companies that chose initial public offerings over the blank-check route rose 12% in the same period, according to the Renaissance IPO Index. The SPAC slump followed “a bit of froth,” Jonathan Krinksy, chief market technician at Bay Crest Partners LLC, wrote Tuesday in a report.

No comments:

Post a Comment