A blank-check vehicle backed by venture capital firm Bain Capital has withdrawn plans for a U.S. initial public offering, according to a regulatory filing on Tuesday, joining a slew of companies that have canceled listings this year.
BCC Investment Corp’s withdrawal comes amid volatility in the U.S. markets due to heightened geopolitical tensions and rate hike concerns.
The special purpose acquisition company (SPAC) which had filed to float its shares in March last year looking to raise up to $300 million did not disclose the reason for canceling its listing.
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The alternate route to going public, which had taken Wall Street by storm last year, has seen a pullback in interest due to increasing regulatory scrutiny and poor performance of shares of popular firms.
The U.S. securities regulator recently unveiled a new draft rule that would require SPACs to disclose more details about their listings, in a bid to curb companies from issuing overly optimistic earnings projections.
Last week, a blank-check vehicle backed by former Hollywood executives Harry Sloan and Jeff Sagansky also scrapped its U.S. IPO of up to $2 billion.
A SPAC is a listed firm with no business operations but a pool of capital raised through an IPO that it uses to merge with a private company and takes it public.
Source: Reuters
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