GLOBAL INVESTOR
JEAN PIERRE VERSTER: A SPAC-tacular explosion
No wonder investors have been clamouring to invest in almost any SPAC — they have nothing to lose
04 March 2021 - 05:00
Initial public offerings (IPOs) of special purpose acquisition companies (SPACs) in the US have exploded over the past year. About half of all US IPOs in 2020 were SPACs, and 80% of all US IPOs so far this year have been SPACs, with more than $60bn raised.
These blank-cheque companies have been around for a long time, and have been perennial underperformers (on average) measured over longer periods. Could the latest crop of SPACs be any different? It’s worth looking at how they work...
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