What is a spac list? What are the benefits?

Special purpose acquisition company (SPOT), also known as "blank check company", is essentially a shell company with no actual business operation. Its purpose is to acquire the unlisted target company through merger, share purchase, share exchange, asset acquisition and reorganization within a specified period of time (generally 2 years), so that the target company (also known as successor company) can indirectly obtain the listing status.

The advantages of special purpose acquisition companies are:

Short time to market. Because the special purpose acquisition company is a shell company, its financial statements, information disclosure and issuance application are relatively simple. Special purpose acquisition companies can be listed as soon as 8 weeks after their establishment.

The pricing method is more efficient. When the M&A transaction is completed, the price is determined by the target company and the special purpose acquisition company through negotiation, not by the underwriter's bookkeeping. Therefore, compared with the traditional IPO, special purpose acquisition companies can usually obtain more flexible and certain pricing, and are relatively less affected by market fluctuations.

The ownership structure is clear. Because the company of special purpose acquisition has no actual business, the equity structure of the company of special purpose acquisition is relatively clear, and the risk in litigation and debt is relatively low.