SPAC Boom Creates Fresh Targets for Short Sellers, Activists: Report

SPAC

There are 586 active SPACs in the market, with a combined capital of $175 billion, Bloomberg reports, citing data compiled from the website SPACResearch.com. For SPAC sponsors, they are opportunities to earn fat fees. For the companies they acquire, SPACs are a way to tap public markets for cash without jumping through some of the hoops required in an IPO. Investors are often attracted to SPACs, both before and after the mergers, because they see them as early stage companies with prospects for blistering growth.

Now another group is getting interested: the short sellers and activist investors who look for companies they think are weak. Short sellers are actively hunting for bets that a company’s share price will fall. Read more.

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Fintech Firm Wise’s £9 Direct Listing Plan Buoys London: Report

London’s hopes of attracting more technology companies looking to float on the stock market have received a shot in the arm after the fintech firm Wise chose the city for a rare direct listing expected to value the company at up to £9 billion ($12.42 billion), The Guardian reports. The news confirms reporting earlier this week that the fintech was mulling a direct listing in the UK.