Normally, when a company seeks a listing on a stock exchange, it
will already have an existing business that fulfils the relevant
criteria, such as profit record and minimum market capitalisation,
prescribed by the listing authorities.
A special purpose acquisition company
("SPAC"), also called a blank cheque
company, is an exception to the norm as a SPAC will seek a listing
on a stock exchange without having any existing operations or
income generating business. The SPAC will attempt to raise funds
from its public offering for the purpose of acquiring a business
("qualifying acquisition").
The listing of SPACs gained momentum in the United States in
2020, with approximately US$83.4 billion being raised by such
companies that year. Those who thought 2020 was the banner year for
SPACs were mistaken as the amount raised in the US in the first
quarter of 2021 has already surpassed that amount, with
approximately US$97.3 billion being raised to add to the dry
