© Reuters. Moelis & Co. CEO Ken Moelis (C), smiles after ringing the bell to mark the company’s IPO on the New York Stock Exchange shortly after the opening bell in New York April 16 2014. REUTERS / Lucas Jackson
(Reuters) – Two special purpose acquisitions (SPACs) backed by billionaire investment banker Ken Moelis (NYSE:) have withdrawn their plans to go public in the United States, according to legal filings on Wednesday.
The SPACs, ACI Corp III and Atlas (NYSE: Crest Investment Corp IV), filed for IPOs last March and are looking to raise $1 billion in total.
Moelis is among a number of prominent investors and investment bankers, a list that includes Bill Foley and Chamath Palihapitiya, who have rushed to take advantage of the frenzy of lucrative trading with SPAC.
However, interest in the market has waned, with shares of some companies such as Grab Holdings and BuzzFeed Inc, which merged with SPAC, dropping after listing on the stock exchange.
SPAC investors’ high buyback rates have also dampened investor appetite, as has volatility in US markets caused by concerns about rising interest rates and geopolitical tensions. treat.
A SPAC backed by Moelis, founder and chief executive officer of the investment banking firm Moelis & Co , which previously took electric aircraft startup Archer Aviation Inc public. Even in that deal, however, the companies had to amend the terms to cut Archer’s business value by $1 billion.
SPACs are listed companies that have no business but a pool of capital raised through an IPO that they use to merge with private companies, in transactions that take private companies public .
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