Special purpose acquisition companies (SPACs, also known as blank check companies) were the leading industry group within the underwritten IPO market in the United States prior to the global financial crisis of 2008. Sixty five SPACs went public in calendar year 2007, representing 23 percent of the deals completed. In sharp contrast, from August 1, 2008, through the end of 2009 only one blank check launched an underwritten IPO in the U.S. among the 64 new offerings during this period.
Beginning in late 2010 and continuing this year, SPACs have seen a resurgence in IPO activity. Through June 16, there have been ten SPAC IPOs in 2011, already surpassing the 2010 and 2009 full-year totals. Twenty of the year’s 151 new registrations have been filed by blank checks, compared to 12 in all of 2010. The return of SPACs has been good for the business of EarlyBirdCapital and other smaller or boutique underwriters, but a few of this year’s SPAC IPOs were led by Citi.
The information reported herein was gathered using IPO Vital Signs, a Web-based system that includes all SEC registered IPOs, including REITs and those non-U.S. IPO filers seeking to list in the U.S. markets. IPO Vital Signs does not track closed-end funds, best efforts or non-underwritten deals, or IPO offerings for amounts less than $5 million.
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