Accessing the capital markets via a SPAC transaction
Tech and life sciences companies seeking to go public often gravitate towards the US capital markets, generally in the hope of higher valuations than in Europe.
An IPO has always been the traditional route to do this but SPACs have recently become an alternative with apparently fewer obstacles. Over 650 SPACs have been launched since the beginning of 2020 raising over $200bn. With 248 US SPACs raising over $80bn in 2020 the market saw an enormous surge compared to 2019 during which only 59 US SPACS raised ca. $14bn. In 2021 this trend continues. Until September 2021 more than 410 US SPACs raised over $120bn, far more than the total achieved in 2020, both in terms of the number of transactions and amount of capital raised.
Whilst this trend has reached Europe (a relatively small number of SPACs have been listed on stock exchanges in Paris, Amsterdam and Frankfurt, and the UK has…