The policeman of Wall Street (SEC) is alarmed by the possible dangers associated with Spac, these hybrid financial instruments between initial public offering (IPO) and mergers and acquisitions which are all the rage on Wall Street.
“Over the past six months, US markets have experienced an unprecedented surge in Special Purpose Acquisition Companies
(Spac),
” said
John Coates, head of the corporate finance division at the SEC.
The number of Spacs has literally exploded in recent times on Wall Street.
According to SpacInsider, there have been more than 300 introductions via Spacs in US markets since the start of the year for nearly $ 100 billion in funds raised.
This is more than for the whole of 2020, a vintage which was already particularly prosperous.
So much so that the passage through a Spac has become the main route to enter Wall Street.
To read also:
The Spacs, new darlings of Wall Street
Spac allows a company to be listed in record time, without going through the long and perilous process of an IPO
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