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IPOs and SPACs: Recent Developments

Harvard Corporate Governance

The review article, IPOs and SPACs: Recent Developments , forthcoming in the Annual Review of Financial Economics , examines recent developments in the IPO market. These IPOs have faced criticism for leaving too much money on the table, defined as the difference between the market value of the shares sold and the issue proceeds.

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Considerations for Technology Companies in Pre-IPO Limbo

Harvard Corporate Governance

In recent weeks, Arm, Instacart, and Klaviyo priced their IPOs, marking some of the first notable IPOs by technology companies in the past 18 months. Are IPOs back and will they be here to stay? Companies seeking an IPO in this market may no longer be able to sell growth alone. Can Marquee Deals Reinvigorate the Market?

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IPO Readiness: IPO Equity Awards

Harvard Corporate Governance

As we continue our IPO-related Viewpoint series, we note the marked reduction in the number of traditional or SPAC-related initial public offerings (IPO) in 2022 when compared to 2021 IPO-activity. This article focuses on understanding practices related to equity awards made at or around IPO. Introduction.

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Guide to IPO

Harvard Corporate Governance

There may also be foreign ownership restrictions that impact on the pre-IPO restructuring plans and legal advice should be taken at an early stage. Investor preferences such as these—which may shift over time—can factor into a company’s structuring decisions early on in the listing process.

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Backed by SPACs, IPOs Hit New Heights in 2021

Harvard Corporate Governance

The global IPO market made up for lost time in 2021. But even without that effect, last year was remarkable, with IPO activity hitting new heights. Last year’s global IPO figures included the launch of no fewer than 681 SPACs, which collectively raised US$172.3 Guzman, Kaya Proudian , and John Vetterli.

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Final Rules on SPAC IPOs and De-SPACs

Harvard Corporate Governance

1] The Final Rules largely codify the substance of the rules proposed by the SEC on March 30, 2022 (“Proposed Rules”), which were intended to enhance investor protections in SPAC initial public offerings (“IPOs”) and initial business combinations (“De-SPACs”). [2] 2] We previously summarized the Proposed Rules, available here. [3]

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SEC Rules Would Make SPAC Process More Burdensome than Traditional IPOs

Harvard Corporate Governance

On March 30, 2022, the Securities and Exchange Commission proposed new rules that would eliminate many of the current benefits for a private company in going public through a merger with a SPAC (in a so-called “de-SPAC” transaction) rather than through a traditional initial public offering (IPO) process.