On January 1, 2022, the Hong Kong stock SPAC listing system was officially launched. Some coworkers may be unfamiliar with the name SPAC. On a whim, they wanted to learn about SPAC in the bullpen about what SPAC is and how it affects our investment.
SPAC is an abbreviation for Special Purpose Acquisition Company, that is, a special purpose acquisition company. It sounds very lofty, but it can be summed up simply in four words --Backdoor listing。 Some people also call SPAC the “blind box” of the capital market.
The basic process for a SPAC listing is for investors to set up a shell company, then IPO, and then acquire the target company (usually some potential starups or unicorns). This method allows such potential companies to quickly go public behind the shell, simplifies traditional listing procedures, and increases the speed of listing. Since complicated listing processes such as filing, hearing, and review are eliminated, listing requirements can generally be achieved within a few months
Newcomers who are concerned about US IPOs should know that in the US stock market, there are many examples of listing with SPAC. Throughout 2020, the number of successful US SPAC IPOs has surpassed the number of traditional IPOs. In recent years, in Asia and the Pacific, this listing method has also gradually become popular, and the SPAC listing mechanism of the Singapore Exchange will take effect in September 2021. The Hong Kong Stock Exchange also followed suit, starting January 2022...