17.06.2022
558

SPAC

Andrew Andreev
Author at ApiX-Drive
Reading time: ~2 min

SPAC (Special Purpose Acquisition Company) is a type of company whose purpose is to help other companies enter the stock market, bypassing the standard IPO procedure.

As you know, for many companies, entering the stock exchange through an IPO is quite complicated, long and costly, and SPAC companies offer to speed up and facilitate this process.

In other words, SPACs are created to pool investor funds for further mergers/acquisitions of promising companies. SPACs are considered to be a highly sought-after IPO alternative for young companies and start-ups, as they help them list on the stock exchange literally from scratch.

Connect applications without developers in 5 minutes!
Use ApiX-Drive to independently integrate different services. 350+ ready integrations are available.
  • Automate the work of an online store or landing
  • Empower through integration
  • Don't spend money on programmers and integrators
  • Save time by automating routine tasks
Test the work of the service for free right now and start saving up to 30% of the time! Try it

A SPAC is a type of blank company that specializes in targeted mergers and acquisitions, also known as a blank check. Usually the initiators of the creation of such firms are financiers with a name, they gather a group of investors and buy an “empty” company without a history, and the funds collected from investors are put into an escrow account.

Next, the founders float the SPAC company at a fixed price of $10 per share, after which they wait for offers from young companies or start-ups that want to go public quickly by merging with the SPAC company. The period of existence of such enterprises is limited to two years - if during this time they failed to make a single merger or acquisition, then the SPAK company is subject to liquidation, and the funds collected by it are returned to investors. It is important that SPAKs must spend at least 80% of their authorized capital on the purchase of one asset.

***

Back Home eCommerce Encyclopedia

Set up integration without programmers – ApiX-Drive

Articles about marketing, automation and integrations on our Blog