SPAC (Special Purpose Acquisition Company), is an element explicitly set up to acquire a company in a specific area. A fund-raise through Initial Public Offering (IPO) is the objective of SPAC. When the cash is raised from people in general, it is kept in an escrow account, which can be made use of while acquiring a company. The SPAC is delisted and the cash is returned to the financial investors in case the acquisition is not made within two years of the IPO. SPACs were not a commonly used investment process until recent times. Even in the last two decades, it was observed that SPAC IPOs represented only a little level of total IPO movement. SPACs have just seen a flood in issuance in the last three years, trailed by a sensational expansion in 2020 and 2021 specifically.
July 1, 2021