IPOs vs SPACs

SPACs are whack and IPOs are the gold standard, the former merely being a route to market for weak companies. That commonly held belief was challenged by the recent biotech bull market, when a wide-open IPO window allowed a flood of developers of dubious quality to list. Spacs, also known as blank-cheque companies, still have a worse reputation than IPOs, however. Deservedly so, according to an analysis of returns versus IPOs, although developers that listed via the more traditional route have also performed poorly. Both cohorts substantially underperformed the wider market, Evaluate Vantage finds.