Traditional IPOs Outperform SPACs as Blank-Check Frenzy Cools

Special-purpose acquisition companies may have become the hottest must-have for business tycoons, celebrities and even athletes, but old-school initial public offerings have quietly outperformed them this year.

More than 330 blank-check firms have listed in 2021, mostly in the U.S., making up just over a third of global IPO activity, data compiled by Bloomberg show. They join the 300 SPACs already floated last year, sparking concern among investors about their potential to find suitable acquisition targets and increased competition for the most attractive assets in the market.

This year’s SPACs are trading up about 1.2% on average on an offer-to-date ...