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$76.7bn of SPAC IPOs break all-time record only ten weeks into 2021

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So far this year, 258 global special purpose acquisition company (SPAC) IPOs have been brought to the market, up to the end of last week, surpassing the full year annual record of 256 set during 2020 in just 10 weeks.

According to new Refinitiv data, published this morning, global SPAC IPO proceeds total just over $76.7bn so far this year, just US$2.5bn behind full year 2020 levels. 

US-listed SPAC IPO offerings dominate the space, with 250 blank cheque companies brought to market so far this year, up from just 13 at this point last year.

Since the beginning of 2020, over 200 SPAC combinations have been announced, Refinitiv found, with last month hitting an all-time monthly high with 49 combinations valued at US$117bn. 

SPAC M&A activity in the technology, industrials and financials sectors accounts for 49 per cent of the total number of business combinations since the beginning of last year.

Based on an analysis of IPOs priced since 2018, approximately 500 special purpose acquisition companies are currently searching for a business combination.

Citi leads the pack

Citi leads the year-to-date SPAC IPO underwriting league table with 56 offerings, which have raised over $10bn in proceeds, followed by Credit Suisse and Goldman Sachs. 

The top 10 underwriters of SPAC IPOs account for 74 per cent of overall proceeds raised so far this year. 

Credit Suisse led the full year 2020 SPAC IPO rankings with $12.2bn from 40 offerings, followed by Citi and Goldman Sachs. The top 10 underwriters accounted for 78 per cent of 2020 SPAC issuance.

Matt Toole, director at Refinitiv Deals Intelligence, said this morning that “the SPAC capital raising phenomenon that began as we emerged from last year’s global lockdown has accelerated into 2021 at an unprecedented pace, with an average of 26 SPACs pricing per week, compared to 11 during the fourth quarter of 2020.”

In the US, SPACs are outpacing traditional IPOs by a measure of nearly 4:1 and have raised more than double traditional IPO proceeds so far this year, he added. 

“Clearly, investors, private companies and capital markets professionals are focused on this emerging product and with nearly 500 SPACs searching for acquisitions, it’s safe to say we’ll continue to watch the SPAC ecosystem closely,” Toole added.