Sunday, 22 May 2022

The great un-SPAC-ing

More than 800 SPACs raised capital between May 2020 and December 2021. Underwriting fees were collected; questionable incentives and complexity remained.

SPACs used to be a curious capital-markets sideshow: complex, obscure, hardly novel. A conventional initial public offering underwritten by investment banks was the marker of corporate maturity; merging with a pile of cash and entering the stockmarket by the backdoor was not. This changed when stockmarkets rallied from their covid-induced lows.

Find out more from The Economist HERE.
 
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