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.