The Special Purpose Acquisition Company (“SPAC”) market experienced continued momentum throughout 2021 with a record number of IPOs during the year and an additional 272 SPACs currently filed to IPO in 2022. Average IPO proceeds declined from $336.5 million in 2020 to $266.0 million in 2021.
Despite certain challenges, including a more competitive PIPE financing environment and heightened SEC scrutiny, SPACs have proven to be an attractive transaction alternative as only one SPAC liquidated in 2021. However, 33 SPACs that are actively seeking targets have under six months left to complete a de-SPAC transaction and thus the number of liquidated SPACs will likely increase in 2022.
With just under 200 de-SPAC transactions completed in 2021 and another 267 announced, the SPAC market is primed to continue its upward trajectory in 2022. Additionally, SPACs actively searching for targets represent over $156 billion of IPO proceeds available for potential de-SPAC transactions.