https://www.dhakatribune.com/financ...d-ipo-doesnt-look-like-its-gone-all-that-well
A SPAC is what used to be called a shell company. There's a quotation, people have subscribed to stock at $10 a piece and that's all there is, the quotation and a pile of cash. The aim is to merge this with a private company and so bring that private company to market. This avoids the tedious process of an IPO plus the 7% of money raised that goes sa fees to the organising banks. It also means that companies that wouldn't survive the IPO process - too young say - can come to market.
A SPAC is what used to be called a shell company. There's a quotation, people have subscribed to stock at $10 a piece and that's all there is, the quotation and a pile of cash. The aim is to merge this with a private company and so bring that private company to market. This avoids the tedious process of an IPO plus the 7% of money raised that goes sa fees to the organising banks. It also means that companies that wouldn't survive the IPO process - too young say - can come to market.
