CNBC Pro

SPACs aren’t popping anymore as new deals flood the market, scrutiny increases

Share
Key Points
  • The first-day return of SPACs dropped to near 0% in March from 5.4% in February and 6.1% in January, according to University of Florida finance professor Jay Ritter.
  • The current debut performance is even worse than blank-check deals' historical average of 1.1% from 2003 to 2020.
  • More than 100 launches took place this month alone, marking the first month where the number of issuance has topped 100, according to SPAC Research.
Jin Lee | Bloomberg | Getty Images

Just a few weeks ago, every SPAC IPO was guaranteed a big pop on the first day it came to the public market. Not anymore.

The first-day return of U.S. special purpose acquisition companies dropped to near 0% in March from 5.4% in February and 6.1% in January, according to data from University of Florida finance professor Jay Ritter. The current debut performance is even worse than blank-check deals' historical average of a 1.1% increase from 2003 to 2020, his data said.

More In Investing trends

CNBC ProLook out below: These stocks have the furthest to fall, according to analysts
CNBC ProGoldman says these stocks are bouncing with bitcoin — and outperforming the S&P 500 in a big way
CNBC ProCompanies are starting to spend big to fund future growth. Goldman has a way to play it