SPACS raised a record $83 billion last year, up from $13.6 billion in 2019, with an average of almost $335 million for 248 listings, according to CNBC. Now, a proposed change in the New York Stock Exchange’s direct listing is anticipated to impact the IPO market and SPACs.
- The proposed NYSE rule, which the SEC approved in late December, will allow entities to raise capital through direct listings instead of selling existing shares.
- Under the rule change, companies can raise cash from retail investors and sell the existing shares.
- Making direct listings is expected to make SPACs or traditional IPO less attractive
- Digital currency exchange Coinbase already announced plans to go the direct listing way at the end of January.
- Software companies UiPath and DataBricks are also expected to take the direct listing route after massive funding rounds.
SPACs have raised over $38 billion in 2021, almost half of the money raised in 2020