How have the collections been on the SPAC model in the current year?
Answer
Answer
India is currently exploring the SPAC model for listing in the US quite aggressively. The special purpose acquisition company or SPAC is a recent opportunity to list companies through the shell company route. In 2020 total SPAC issues were worth $83 billion but we have already seen SPAC issues worth $99 billion in the first 100 days of 2021.
Now, Singapore may lead the Asian journey with the SPAC listing of Grab with an issue size of a whopping $40 billion. Altimeter Growth Corp will be the SPAC that will be used by Grab to list. A SPAC is a shell company floated to acquire a potential IPO candidate. It simplifies the IPO process in complex markets like the US. SPAC is wound up and profits distributed after the IPO.