SPAC Hot Streak Put on ice by regulatory warnings

Investors are approaching one of the strongest bets on Wall Street, as the new regulatory control of special-purpose purchasing companies reduces the wave of new issues at some point, while stock prices plummet.

SPACs have raised about $ 100 billion so far this year, more than last year’s record of $ 83.4 billion, which in itself was higher than the amount raised in the nearly 30-year history of these empty check companies.

The market hit another record on Tuesday, when Grab Holdings Inc., the Southeast Asian group that delivers food and digital wallets, said it would go public with a nearly $ 40 billion SPAC deal.

Critical comments from regulators seem to scare some investors and new offers. By last month, about five new SPACs had hit the stock market every business day in 2021. In the past 14 days, 12 new SPACs have started trading, SPAC Research data show.

The slowdown comes as other assets, such as stocks and cryptocurrencies, are at or near records. SPACs are among the weakest in the market lately.