×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

More than a few market analysts have declared that 2021 is the year of the special purpose acquisition company (SPAC). An SPAC is a blank cheque company and a publicly traded entity that exists solely to raise money and acquire an existing private company. SPACs have been a hot way for young companies to quickly go public and scoop up cash for growth.

About half of all new initial public offerings (IPOs) by volume since January 2019 were SPACs, according to a February 2021 JPMorgan report. But shares in businesses that went public through deals with blank-cheque companies have dropped by an average of 40% from their highs, as appetite for the once red-hot sector of the US stock market cools rapidly. ..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.