SPAC Investing: A Guide to Special Purpose Acquisition Companies | Century Financial [Webinar]
A SPAC (special purpose acquisition company) is a shell company set up by industry experts with the sole purpose of raising money from investors through an IPO to acquire an early-stage company. These "blank cheque companies" have been around for decades, but in recent years, they have seen a huge surge.
SPACs raised a record US$83bn in proceeds from 248 SPAC IPOs in 2020, compared with US$13.5bn from 59 IPOs in 2019. In the first quarter of 2021, there have already been 298 SPAC IPOs raising over US$88bn. As a faster alternative to an IPO, SPACs allow growth companies to become public without execution risk of a typical IPO process. Investing in younger, less-established companies offers significant upside potential but also carries elevated risks.
In this webinar, we focus on the key trends, potential concerns, and best practices in SPAC investments in 2021.
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