Investor Mark Ein-backed SPACs scrap U.S. IPO plans

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A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid/File Photo

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March 4 (Reuters) - Two blank-check vehicles backed by investor Mark Ein have withdrawn their plans for initial public offerings in the United States, according to regulatory filings on Friday, joining a slew of companies that have canceled listings this year.

The withdrawal by Capitol Investment Corp. VI and Capitol Investment Corp. VII comes at a time when volatility in the U.S. market has spiked, triggered by geopolitical tensions, rate hike concerns and uneven earnings.

The companies, which had filed for IPOs in February last year, aiming to together raise about $600 million, did not disclose the reason for cancelling their plans. read more

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Last month, two special purpose acquisition vehicles (SPACs) backed by venture capital firm Foundry Group also shelved plans for their listings in New York.

Ein's prior SPACs have invested in a range of firms including real estate investment trust Two Harbors, specialty cruise operator Lindblad Expeditions and PR Newswire owner Cision and NESCO, a provider of specialty rental equipment.

SPACs, which offer an alternate route to list shares, gained popularity in 2020. But the sector has taken a hit, as shares of popular companies such as Grab Holdings and BuzzFeed (BZFD.O), which merged with SPACs, tumbled after going public.

The SPAC market has also been dealing with tightening regulatory scrutiny since last year.

A SPAC is a firm with no business operations but raises capital through an IPO that is used for merging with a private company and taking it public.

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Reporting by Manya Saini in Bengaluru; Editing by Shailesh Kuber

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