Bronze charging bull in the financial district of New York City.
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LONDON – SPAC’s craze in Europe is starting to pick up some momentum.
U.S. After years of so-called special-purpose acquisition companies, a growing number of Cory-Czech companies are raising funds to snap a European tech company.
SPX These are shell companies created with the sole purpose of raising funds to acquire an existing private company, so that the target firm can bypass the traditional initial public offering (IPO) process.
According to Refinitive’s data, these Corey-Czech companies raised a total of $$ 2.3 billion in 244 IPOs in the US last year. U.S. Spec Mania continued until 2021, with 134 other companies raising about 39 39 billion since the beginning of the year.
The attraction of SPX is that it allows companies to track the stock market listings faster. IPOs can be a very lengthy process, and some companies are turning off the traditional route to avoid a potential swing in market sentiment. The IPO has also attracted criticism from venture capitalists like Ben Gurley, who are worried they are being undervalued.
SPX IPO Provides an alternative to, as well as direct listings where companies sell existing shares to public market investors. They mostly attract high-growth companies. Last year, the arrival of a UK electric vehicle manufacturer was announced in the U.S. The deal was announced through a merger with a blank-check firm.
Mostly U.S.
Europe has largely escaped the speck boom. Just three specks earned three 495 million in Europe last year. And not a single SPAC in the entire continent this year. Not started.
S.A.P.C. It’s not a new phenomenon, but it’s a U.S. phenomenon. Developed in 2020. S.P.A.C. Investors’ funds are kept in a trust account after the completion of its IPO, and if shareholders do not agree with it, they can vote against the deal and receive it. Their money back.
People inside the industry say that compared to Europe, the U.S. In SPX. The composition of is different. And there are far fewer publicly listed technology companies in Europe than in the US, making it difficult for investors and analysts to compare and benchmark companies in the sector.
London Stock Exchange more SAPX. Is considering luring and contacting law firms and banks to see if they facilitate the listing of such vehicles.
The person chose to remain anonymous because the negotiations have not been made public.
Meanwhile, the UK has begun reviewing its listing rules to attract more tech companies to the market. Last year was a fairly quiet year in Europe in terms of tech IPOs, while the USA got off to a great start with the selection of Dordesh and RBNB.
“Unfortunately in Europe, interesting and lucrative companies do not have as much access to capital in the US, in the private domain or in public markets,” said Makram Azhar, CEO of Golden Falcon Acquisition Corp, focusing on SPAC European Tech.
“The money venture capital pool, for example, is much smaller in Europe than in the US and the IPO market is much weaker.”
Deals in tasks
A growing number of Corey-Czech companies are listing in New York with the aim of buying a European tech firm.
Azar, a former chairman of banking for Europe at Barclays, raised 34 5,345 million for his SPAC in an IPO in December. The Golden Falcon plans to take on the European “champion” Tech, Media and Telecom (TMT) or Fintech in public.
“Europe has more than 60 TMTs and Fintech Unicorns, of which more than 20 are based in the UK,” Azar said, adding that he sees “very attractive companies” in the region.
Fintech has been a special boon for Europe’s tech sector for years. A payment firm listed in Amsterdam, Adyan has seen its share price more than double year-on-year. And in the private market, valuable companies like Checkout.com and Clarna are on the rise.
Another SPAC, North Atlantic Acquisition Corp., raised 37 9,379.5 million in its IPO last month. The company is mainly looking for targets in Europe’s consumer, industrial and TMT sectors.
“It’s an interesting market in Europe,” said Gary Quinn, CEO of North Atlantic Acquisition Corp and former vice chairman of Credit Suisse’s investment banking division in Europe. “We’re seeing a pipeline of deals coming from a few different areas.”
Quinn said he expects his SPAC to secure a deal to join the European company, “in two years from now January.”
Some European companies are already considering merging into SAPC companies.
An IPC No. Soon an SPAC. No more than 10 European tech companies called. The person chose to remain anonymous due to the sensitive nature of the discussions.
Specs is not able to engage until potential merger targets are listed.
The US and China should often be left behind when it comes to tech in Europe, but the sector is growing rapidly. European start-ups raised a record $ 41 billion last year, according to London-based venture capital company Atomico.
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