The full name of a special purpose acquisition company is a "special purpose acquisition company", that is, a "cash shell company" formed by raising funds from mutual funds and hedge funds.
This kind of company has only a pool of funds, no business operation and no assets. Strictly speaking, it was established to find a non-listed company with high growth and development prospects, to help the company realize listing quickly through mergers and acquisitions, and to obtain a large amount of funds from special purpose acquisition companies.
Introduction to listing
Listing is a term in the securities market. In a narrow sense, initial public offering (IPO) refers to the process that an enterprise issues shares to investors for the first time through a stock exchange in order to raise funds for enterprise development. When a large number of investors subscribe for new shares, they need to draw lots for allotment, which is also called drawing new shares. Investors who subscribe expect to sell at a price higher than the subscription price.