Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Investors Gorging on Blank Check IPOs

December 23, 2020 By Jeremy Jones, CFA

By OpturaDesign @ Shutterstock.com

Blank check IPOs, where public offerings are made with the promise to buy another company, have seen a record $78 billion raised this year. That’s more than the combined total of all blank check IPOs in all previous years.

Some investors apparently don’t even care if the stocks they are buying are an actual business. If you have a business you have even thought about taking public, now’s the time. The IPO market is as hot and speculative as it has been since the dotcom bubble.

Bloomberg has more:

Special purpose acquisition companies, or SPACs, went from a back-of-the-shelf financial vehicle to one of the biggest segments of initial public offerings, with a record $78 billion raised in the U.S. this year, according to data compiled by Bloomberg. That exceeded the combined total of SPACs in all previous years and made up about 45% of this year’s record $177 billion IPO volume, the data show.

Blank-check companies, as SPACs are also known, will continue to shake up not only equity markets but also mergers and acquisitions in 2021, dealmakers predict. Still, the flood of SPACs searching for acquisition targets — plus the new ones being raised every day trying to woo investors — could create a
challenging dynamic.

“I still think it’s going to be a very, very robust market in 2021,” said Niron Stabinsky, Credit Suisse Group AG’s head of SPACs. “ECM volumes are incredible, which is a function in part of the strong performance of the equity markets in general. At some point it is inevitable that things will cool down and you will see volume slow.”

Credit Suisse alone is preparing to launch seven to eight new SPACs in January, he added.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Regulators Zoom in on Blank Check Firms (SPACS)
  • Earnings Predictions Scare Investors
  • Rising Interest Rates Clobber Investors as Stocks Collapse?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • MARKET TURNING: Canada’s Housing Market Turmoil - May 19, 2022
  • HORDING CASH: Funds Hold the Highest Level of Cash Since 9/11 - May 18, 2022
  • COMMODITY CRUNCH: Will Tesla Buy a Cobalt Mine? - May 17, 2022

Search Young Research

Most Popular

  • MARKET CHAOS: This May Take Time, Here’s How to Prepare
  • PRICES SOAR: Diesel Shortage Could Cripple America's Economy
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • Don’t Throw Your Bond Portfolio Out the Window
  • Institutional Investors Fall in Love with Oil, Again
  • You Can Do Better than Mutual Funds and ETFs with Your Cash
  • COMMODITY CRUNCH: Will Tesla Buy a Cobalt Mine?
  • CRYPTO: Has the Fire Gone Out?
  • The Power of a Compound Interest Table

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • What Would We Do without the Experts?
  • V4 Stands Against North African and Middle Eastern Invasion
  • BUY THE DIPS? Can You Catch a Ginsu Knife?
  • Florida: Enjoy Certain Freedoms and Individual Liberties
  • ENERGY FREEDOM ACT: Ted Cruz Introduces Bill for Energy Independence
  • Consequences of Biden Killing the Keystone Pipeline
  • Are You Suffering from One of These Nutrient Deficiencies?
  • PRIMARIES: Trump Endorsed Candidates’ HUGE Night
  • “We Cannot Save Ukraine by Dooming the US Economy.”
  • What’s Ahead for America During Biden’s Last Years

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.