Size of SPAC IPOs in Europe 2010-2020
IPO: SPAC vs traditional
Special purpose acquisition companies are public companies with neither a specific business plan, nor a product or service to sell. The specific purpose of SPACs is to raise capital and then merge with, or acquire a private company. This allows the private company to go public without going through the usual process of filing for an IPO, which typically takes longer and is more expensive. However, the equity returns of IPOs were almost double those of SPAC mergers in 2020.