SPACs Explained: How Special Purpose Acquisition Companies Work and Their Role in Going Public In recent years, SPACs have emerged as a popular way for companies to go public. SPAC stands for Special Purpose Acquisition Company. It’s also referred to as a “blank check” company. Unlike traditional IPOs, SPACs offer a faster and simpler way to list on the stock exchange. But how do they work? Let’s break it down step-by-step. Understanding SPACs A SPAC is a shell company. It has no commercial operations and no significant assets. Its primary purpose is to raise capital through an initial public offering…
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