Shares in publicly traded companies through companies that look for emptiness have declined by almost two-fifths from their range, as interest rates for the well-known stock market in the US have declined sharply.
Of the 41 undocumented companies that complete their operations from early 2020, only three live within 5% of their value. Eight of them are more than half over, and several are down by more than 80 percent. The average drop is 39 percent.
The figures are based on a Financial Times survey by Refinitiv companies that specialize in private companies that have acquired more than $ 1bn, following a major US market summit that set them up. elder last week.
Spacs, which derives revenue from investors by promising to merge with an anonymous business company, has become one of the busiest markets in the global market last year. About half of the $ 230bn raised worldwide the new series has gone to Spacs.
Less than two months ago, bankers were still actively evicting Location they share top shares after companies have announced their purchase ideas. Groups from electric car manufacturers and software developers to home loan developers choose to go public via Spac instead of the traditional public offering system for the first time.
But relationships are now taking a long time to complete as regulators are scrutinizing the disclosures and forecasts of the profits made by companies, and those that sell to corporations that make the most money on sales. be very careful. As a result, Spac’s new launch has slowed slightly.
Shivaram Rajgopal, a professor at Columbia Business School, said that in the past in the stock market there were more and more companies going public when they tried to ride the waves, and this has indeed happened at Spacs.
“When there is a lot of power, when the mind starts to go crazy, a company that is on the lower side can go public,” he said.
The lower price decreases and decreases in new trades indicating that stockbrokers and other stock traders are cooling off especially at basics that do not reflect money or often even an item, which was among those whose shares had risen sharply.
The initial segments of the XL Fleet electric car rose about 70% to a peak of $ 35 after spreading through the Spac in December, before falling 80% to just $ 7 in the following months. Tortoise Acquisition Corp., a shellfish company that took Hyliion’s automotive equipment in public, has seen its share price increase fivefold after announcing the merger, but is also on the list of more than 80% shares.
Of the Spacs that have been completed since January 2020, eight have fallen sharply and are now selling below $ 10 while the Spac shares were at their first price when they first made money.
This includes two major unregistered contracts to date, the founder of a mortgage loan at United Wholesale Mortgage and the medical company Multiplan, which traded with Spacs with the help of billionaire financier Alec Gores and former Citigroup Michael Klein, respectively.
Shares in Spacs still seeking deals have also fallen. More than two-thirds of the 425 undocumented companies that have registered since January are selling for $ 10, according to a FT analysis by Refinitiv. This could mean that there is financial uncertainty about earning a living.