Decoded: What is SPAC and is it the real thing or a misplaced hype?

Special Purpose Acquisition Companies, or SPACs, are listed shell companies created with the sole purpose to acquire unlisted or private companies and then merge with the latter

Special Purpose Acquisition Companies, or SPACs, are the hottest new thing on Wall Street today. Their sponsors present them as a brand new asset class that offers investors an opportunity to invest in private companies at an attractive valuation. So, what is SPAC and is it the real thing or a misplaced hype?

What is a SPAC?

At the simplest, SPACs are listed shell companies created with the sole purpose to acquire unlisted or private companies and then merge with the latter. SPACs don’t have business operations or any revenue of their own but are created to raise capital through