SPAC deals are swiftly falling from grace as $75 billion of value has evaporated in just six months, according to a Wall Street Journal report.
The collective value of 137 deals that closed by mid-February has plunged 25% since the start of the year, totaling $75 billion in lost value, according to the Journal, citing a Dow Jones Market Data analysis. Some 75% of the deals have fallen below their initial listing price – a marked contrast to the salad days of SPACs when prices would almost always go up.
That compares unfavorably to the Renaissance IPO ETF, which tracks the fortunes of recent IPOs and which lost 12% during the same period. Both trailed the broader S&P 500, gaining about 20% year-to-date.
The SPAC losses were particularly pronounced in green-energy deals that have attracted outsized attention from investors including those from funds focused on the fossil fuel industry.