A special purpose acquisition company (SPAC) is formed for the purpose of raising capital through an IPO and using those funds to acquire an operating business.
SPACs bring together experienced management teams, often comprising industry veterans, private equity sponsors or other financing experts who can leverage their expertise to raise capital to acquire, then operate, a new public company within 24 months or less, a SPAC will find an attractive company to acquire and, once that transaction is completed, a new publicly traded company is formed.
Depending on their size and structure, a SPAC may choose to list on the NYSE.
NYSE is our premium market for the world’s largest and most well-known companies. NYSE-listed companies (including SPACs) benefit from a unique market model that combines state-of-the-art technology with human judgment via a Designated Market Maker (DMM) at the point of sale. DMMs have formal obligations to provide liquidity, improve quotes and encourage market participation. This ensures NYSE-listed companies receive the best possible market quality.
The New York Stock Exchange is on track to steal back the crown for US stock market listings from its rival Nasdaq this year after tapping into the booming market for blank cheque companies.
NYSE President Stacey Cunningham provides insight into record market highs and the IPO market.
Stacey Cunningham joins Squawk Box to discuss how more companies are going public through SPACs rather than traditional IPOs.