SPAC IPOs

Oxford Handbook of IPOs, edited by Douglas Cumming and Sofia Johan, 2017, Forthcoming

40 Pages Posted: 17 Jan 2017 Last revised: 21 Feb 2017

See all articles by Yochanan Shachmurove

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Milos Vulanovic

EDHEC Business School

Date Written: January 17, 2017

Abstract

Specified Purpose Acquisition Companies (SPACs) are a special type of public companies currently available to investors in financial markets. As an investment vehicle, modern SPACs are traced back to 18th century England where blank checks were first mentioned as blind pools during the infamous South Sea Bubble. In the United States, the Security and Exchange Commission classifies SPAC as a blank check company. This chapter reviews the academic and financial literatures about SPACS, describes their institutional characteristics and market performance since their Initial Public Offering (IPO). The sole purpose of SPACs is to use the proceeds to finance future acquisition.

Keywords: Blank checks, Initial public offering (IPO), IPO survival, M&A, Specified purpose acquisition companies, SPACs,

JEL Classification: F30, G12, G14, G24, G30, G32, G34

Suggested Citation

Shachmurove, Yochanan and Vulanovic, Milos, SPAC IPOs (January 17, 2017). Oxford Handbook of IPOs, edited by Douglas Cumming and Sofia Johan, 2017, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2898102

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics ( email )

160 Convent Avenue
New York, NY 10031
United States
212-650-6202 (Phone)

The University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-1090 (Phone)
215-573-2057 (Fax)

Milos Vulanovic (Contact Author)

EDHEC Business School ( email )

24, avenue Gustave Delory
CS 50411
Roubaix, 59057
France

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