IPOs and SPACs: Recent Developments

Rongbing Huang

doi:10.1146/annurev-financial-111021-100657

IPOs and SPACs: Recent Developments

2023-11-01

2

OA

AI

DOI：10.1146/annurev-financial-111021-100657

Original

Original request for help

Save

Abstract

En 中文

After two decades of low initial public offering (IPO) activity and a number of regulatory changes, the number of IPOs of both operating companies and special purpose acquisition companies (SPACs) boomed in the United States in 2021 before collapsing in 2022. In recent years, surging valuations have resulted in many private companies achieving unicorn status, a valuation of $1 billion or more, partly fueled by investments from mutual funds. Many of the unicorns that have gone public have done so with dual-class share structures. We compare three alternative mechanisms for going public, including traditional IPOs, mergers with SPACs, and direct listings. The most common exit for successful venture capital-backed companies, however, continues to be by merging with a larger company.

Keywords:

initial public offering

IPO

special purpose acquisition company

SPAC

unicorn

confidential filing

direct listing

dual-class shares

IPOs and SPACs: Recent Developments

Abstract

Journal

Organization