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Jan. 26, 2022, 12:43 p.m. EST

UPDATE: At least 3 SPACs have withdrawn IPO plans in the last 24 hours amid highly volatile equity markets

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By Ciara Linnane

At least four special-purpose acquisition corporations, or SPACs, have pulled their initial public offering plans in the past 24 hours, amid highly volatile equity markets. SPACs, also known as blank-check companies, are shell companies that raise money in an IPO and then acquire a business or businesses. The vehicle became popular during the pandemic, but many have struggled in the last year. Do It Again Corp., a SPAC that was targeting a deal in the restaurant or food service sector, withdrew its registration early Wednesday. Murphy Canyon Acquisition Corp., which filed last June to raise $150 million in an IPO, withdrew its registration statement on Wednesday, and then said the withdrawal had been filed in error. Murphy Canyon had said it was seeking a target company in the real estate sector, "including construction, homebuilding, real estate owners and operators, arrangers of financing, insurance, and other services for real estate, and adjacent businesses and technologies targeting the real estate space, which we may refer to as "Proptech" businesses." Those moves came after CAVU Techology Acquisition Corp., which filed to raise up to $100 million in an IPO last March, also withdrew its registration statement. In its original filing, the company said it would target technology companies with an enterprise value of approximately $250 million to $500 million. Finally, TCG Growth Opportunities Corp., which filed for an IPO last March with plans to raise up to $250 million, also pulled its deal. The IPO market has gotten off to a weak start in 2022, with the Renaissance IPO ETF /zigman2/quotes/207665280/composite IPO -4.67% down 24.6% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.39% has fallen 9%.

US : U.S.: NYSE Arca
$ 29.61
-1.45 -4.67%
Volume: 135,245
May 16, 2022 4:10p
-15.88 -0.39%
Volume: 2.21B
May 16, 2022 5:14p

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