I-Bankers Securities Incorporated  
                 
         
   

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SPAC Facts 
   

 

 
SPACs and I-Bankers
I-Bankers is ranked among the top underwriters of SPACs™, with a particular emphasis on expanding SPAC™ operations in continental Europe. According to DealFlow Media's The SPAC Report  (24 January 2008), in 2007 I-Bankers ranked 6th in "Total IPO Proceeds",  with over $1.6B, and 5th in total number of offerings.  

SPAC Facts
  • SPAC™ stands for "Special Purpose Acquisition Company"™. Also known as "blank check companies", SPACs™ are publicly-traded investment vehicles. The purpose of a SPAC™ is to effect a merger, acquisition, or other business combination with a company unidentified at IPO. 
  • The majority of the funds raised in IPO are placed into a trust/escrow account, and can only be released if shareholders approve the acquisition proposed by the SPAC™ management. If a suitable target is not found, or if shareholders vote against the combination, the SPAC™ liquidates and money in trust/escrow is returned to investors.
  • The members of a SPAC™ management commonly make a sizeable "at-risk" personal investment in the SPAC™; underwriters typically defer a cut of their underwriting fees (kept in trust/escrow) until such a time as the business combination is completed.
  • SPACs™ trade on AMEX, NYSE, NASDAQ, the OTC Bulletin Board in the U.S. and on NYSE Euronext Amsterdam and London AIM exchanges in Europe.    

SPAC Stats (updated in March 2009)

  • In North America alone, 161 SPACs™ have been launched since 2003 and have raised over $21.9 bn in gross proceeds. 
  • The average SPAC™ deal size in 2004 was $40.4 million. In 2008, it was $226 million. 
  • Of the 161 SPACs™ traded since 2003, 
    • 63 have completed an acquisition
    • 36 have liquidated 
    • 16 announced an acquisition target
    • 46 are still looking for an acquisition
  • All 10 London AIM-traded SPACs™ have completed their business combination

SPAC Resources

  • SPAC™ Analytics (www.spacanalytics.com) 
  • Bloomberg: the Morgan Joseph Acquisition Company Index (MJACI) tracks the progress of every SPAC™ listed since 2003, from IPO to Date of Business Combination/ Liquidation. 

  

 

 

 

 

 
 
 

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