![]() ![]() The questions and challenges of how to adequately address these concerns in a balanced way remain. ![]() Such concerns include misaligned incentives, several points of dilution that may disproportionately impact retail investors, and a lack of liability that may be creating an unjustified advantage in this path to the public markets over the traditional IPO. And since the boom, the Commission and its staff identified several areas of concern with SPACs. But, perhaps, we need to be careful not to facilitate a race to the bottom in terms of public market protections. While that level of SPAC activity may not be sustained over the long-term, it is clear SPACs provide an alternative to the traditional IPO model, and may offer some competitive challenges. There were a total of 248 SPAC IPOs that same year, meaning roughly 60% of all IPOs were conducted through SPACs. In 2020, 165 operating companies went public via a traditional initial public offering (IPO). public markets provide many benefits, including disclosures and safeguards at the offering stage followed by periodic reporting, public trading venues that offer high degrees of liquidity, and an ecosystem of laws and regulations that provide investors with protections and remedies when needed. I hope the roundtable will be one of many, and that such discussions will lead to academic work, public input, and engagement from all stakeholders and interested parties.Īs you are all aware, the U.S. But nothing takes place in a vacuum, and the meteoric rise in SPACs and the Commission’s proposed rulemaking must be considered in the context of changes in both the public and private markets. Now, of course, this was an issue that we were paying attention to well before the notice and comment period for the SPAC rulemaking proposal. And, one of those areas is Special Purpose Acquisition Companies, or SPACs. I cannot emphasize enough how important discussions such as today’s are – thinking through some of the most pressing questions in our markets. As always, I must give my standard disclaimer that my remarks are my own and do not necessarily represent the views of the Commission or its staff. I am honored to precede such an esteemed panel of practitioners and academics. Thank you Hal for that kind introduction and for inviting me to speak today. ![]()
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