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Can Hong Kong keep its SPAC jealous in Bay?

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Even if they find a great sponsor who in turn hits a hot target, they may still lose because 20% of the free stakes are given to SPAC promoters, guarantees that Buybacks are kept free of charge and IPO underwriting fees. All this dilution means someone investing $10 in SPAC and holding for merger is trying to make a profit with only $6.67 in cash. Is this poor man’s private equity, or the poor cousin of private equity? Unsurprisingly, “SPAC shares tend to drop by a third or more in value within a year of the merger,” according to a Stanford Law School working paper whose authors studied 47 mergers – de-SPAC in industry jargon – from January 2019 to June 2020.

https://www.washingtonpost.com/business/can-hong-kong-keep-its-spac-envy-at-bay/2021/12/02/647e5b16-53c4-11ec-83d2-d9dab0e23b7e_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business Can Hong Kong keep its SPAC jealous in Bay?

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