1st Half 2022 SPAC and De-SPAC Litigation Update
White Paper
1st Half 2022 SPAC and De-SPAC Litigation Update
If 2020 was the year of the Special Acquisition Companies (SPACs), and 2021 the year of SPAC litigation, 2022 is off to a slow start in terms of de-SPACs and related litigation. The number of traditional IPO filings and SPAC IPO filings fell to their lowest levels in the past seven quarters. As of March 31st, there was $183.5 billion in SPAC dry powder available to be invested. After Q1 of 2022, there were 604 priced SPAC IPOs actively seeking a target, representing $144.7B in gross proceeds, the highest number and dollar value on record at the end of any quarter.
The numbers speak for themselves as SPAC IPO and de-SPAC M&A activity dropped significantly in 2022.
- New SPAC IPOs fell from 163 in Q4 of 2021 to 55 in Q1 of 2022.
- Only 34 de-SPAC M&A deals were announced in Q1 2022, compared to 61 in Q4 2021.
- Withdrawn SPAC deals outnumbered priced SPAC IPOs 61 to 55 in Q1.
- This is a drastic increase from the 11 withdrawn SPAC IPOs in 2021.
