Analysis: Cash-hungry emerging markets arrive late to the SPAC party

0
46

A Grab logo is pictured in Singapore March 21, 2019. Picture taken March 21, 2019. REUTERS/Anshuman Daga

  • SPACs make up bulk of U.S. IPOs, only a fraction in EMs
  • Singapore’s Grab, Brazil’s Embraer unit line up for SPAC deals
  • SPAC deals could boost EM companies’ fund raising prospects

LONDON, July 26 (Reuters) – Emerging markets have so far been on the fringes of a fundraising boom using so-called SPACs or special-purpose acquisition companies, which could potentially unlock a vital new source of cash for entrepreneurs in developing regions.

But the take-off of SPAC fundraisings in these markets hinges in part on the success of a few recently-delayed landmark deals, reflecting wider global investor caution about this funding tool.

SPACs allow investors to list a shell company on public markets before they have identified a business to buy, which provides a speedier route to an initial public offering.

In excess of $115.6 billion has been raised via more than…

Read more…