SPAC, a corporate revolutionized tool for IPO, is modern and powerful. It will eventually out beat private venture capital, crowdfunding, and traditional Form S-1 filing. It encourages investors to become founder members of a SPAC since the investment risk is lower and the prospect for investment returns is sound and good. Whether the investor wants to be a SPAC founder member or as an ordinary investor needs to understand that SPAC is a blank check company in the initial development stage. However, the company will enjoy a high valuation for its securities and market liquidity the moment a merger or an acquisition transaction is completed. Similar to the Form S-1 filing, the registration statement is important. For SPAC, Form F-4.
SPAC prospects, performance and as a player in the U.S. capital market since 2009 is as follows:
Year IPO Count Gross Proceeds (mms) Average IPO Size (mms)
2021 333 105,451.7 316.7
2020 248 83,354.0 336.1
2019 59 13,600.3 230.5
2018 46 10,751.9 233.7
2017 34 10,048.5 295.5
2016 13 3,499.2 269.2
2015 20 3,902.5 195.1
2014 12 1,749.8 145.8
2013 10 1,455.3 145.5
2012 9 490.5 54.5
2011 15 1,081.5 72.1
2010 7 502.5 71.8
2009 1 36.0 36.0
Source: SPAC Insider, SPAC Statistics
With the current Covid-19 pandemic, pharmaceutical and medical products and equipment including vaccines are considered a sound and good business prospect. However, the writer would, among others as a professional services provider, focus on SPAC and IPO in the IT industry (Big Data and AML CDD Compliance software development projects).