SPAC Hot Streak put on ice by regulatory warnings

Investors are cooling off at one of the hottest bets on Wall Street as new regulatory scrutiny of special purpose acquisition companies cuts the stream of new issuance to a trickle as stock prices tumble.

PSPC has raised about $ 100 billion so far this year, more than last year’s record $ 83.4 billion, which was itself more than the amount raised over the nearly 30 years of history of these blank check companies.

The market broke another record on Tuesday, when Grab Holdings Inc., the transportation, food delivery and digital wallet group in Southeast Asia, announced it would go public through a valuable PSPC deal. of nearly $ 40 billion.

Critical comments from regulators seem to frighten some investors and new offers. Until last month, around five new PSPCs were entering the stock market each business day in 2021. In the past 14 days, 12 new PSPCs have started trading, according to data from SPAC Research.

The slowdown comes as other assets such as stocks and cryptocurrencies are at or near all-time highs. PSPCs are among the poorest performers on the market lately.

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