Special-purpose acquisition companies, or SPACs, are having a moment. Led by some of 2020’s buzziest new stocks, a stampede of SPAC initial public offerings has hit the U.S. market over the past six weeks.
Last year, 59 SPAC IPOs raised $13.6 billion. That record is set to be smashed in 2020, even as the traditional IPO market has been slow to revive. This year, 32 SPACs have already gone public, raising $10.4 billion—nearly half of all IPO dollars generated in 2020—according to SPACInsider, a website devoted to research and data about the industry. Nine more SPACs are on deck to list soon.