- 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…