Market debuts by US-based special purpose acquisition companies hit a new low in the second quarter, extending the streak of fewer than 10 IPOs in the period for a fourth consecutive quarter.

Just four blank-check companies went public in the second quarter, the lowest quarterly total over the last four years, according to S&P Global Market Intelligence data. Still, the IPOs raised a total of $980 million, more than any of the previous three quarters.

High interest rates and expectations for additional interest rate hikes in July further extended the dry spell for SPAC IPOs, which typically go public to raise cash and acquire other businesses.

M&A

SPAC dealmaking decreased in the second quarter, with 40 new M&A transactions announced compared to 60 in the first quarter, according to Market Intelligence data.

The aggregate disclosed value of SPAC M&A for the second quarter was $890 million, significantly below the $2.14 billion value of deals struck in the second quarter of 2022.

A weak economic outlook and rising interest rates had weighed on broader M&A dealmaking in the first quarter, with the total disclosed value of North American M&A lagging the same period in 2022.

Nearing the end

A recent count of 10 SPACs nearing their expirations included those targeting deals in the financial and banking technology, healthcare and consumer spaces. Offerings ranged from those valued at $150 million, from both AxonPrime Infrastructure Acquisition Corp. and Cascadia Acquisition Corp., to $357 million from Conyers Park III Acquisition Corp.

SPACs generally have about two years from their IPO to acquire a company before returning raised capital to investors.