The 2021 outlook for the booming SPAC market and traditional IPOs

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2020 was a surprisingly good year for IPOs, but it was an even better year for Special Purpose Acquisition Companies (SPACs).

There were 194 traditional IPO deals raised $67 billion, the best year since 2014, according to Renaissance Capital. But it was an even better year for SPACs, which raised just about the same amount: 200 SPACs raised about $64 billion.

"SPACs bring many advantages to the capital raising process," Gil Ottensoser, head of SPAC Banking and Capital Markets at BTIG, told me, including:SPACs must file an S-4 when announcing a company they are seeking to buy that contains much of the same disclosure and risk outlines that is in the S-1 that an IPO must file.

Her IPO ETF will be one of the first ETFs to include Airbnb and DoorDash when they go public this week., a basket of recent SPAK offerings, expects the profile of SPAKs to only increase in 2021, now that it has so many big names behind it. Next up, says Dellaquila: sports teams. He says RedBird Capital is seeking to take a sports team public, perhaps Fenway Sports Group.

 

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