| 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
- 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
- The majority of the funds raised in IPO are placed into a
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
- 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
- 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.