Leave SPACs In The S-Past?

In the last few years, SPACs have been used broadly in the United States as an alternative vehicle for listing on stock exchanges without having to endure the expenses, delays and uncertainties of a traditional IPO. SPACs surged in popularity during the post-pandemic period marked by capital market volatility (which made seeking a listing through a traditional IPO perilous), low interest rates and a search for high-risk, high-reward investments. It should be considered whether SPACs remain a viable option to access public markets.

WHAT IS A SPAC?

A SPAC is an empty shell or blank-check company which has no current or past operations or assets, other than cash. Its sole purpose is to raise capital from public investors by undergoing a SPAC IPO. The capital is then deployed to acquire, or merge with, one or more existing private companies, which is known as the qualifying acquisition or the de-SPAC transaction.