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European Special Purpose Acquisition Companies

Delivered January 17, 2020. Contributor: Amy R.

Goals

To locate the URLs of special purpose acquisition companies (SPACs) in Europe that have successfully listed in any stock exchange in the last five years.

Early Findings

  • SPACs are also termed “blank check” companies or “cash shells”.
  • In the US there were 34 SPACs listed in 2017 (the highest number since 2007). They raised $9.9 billion.
  • In the UK, there were 15 SPACs listed on the London Stock Exchange in 2017. None were listed in 2016 and only one was listed in 2015. The UK SPACs raised a total of $2.15 billion during that time.
  • SPACs have made a resurgence due to changes in regulations in the oil and gas industry.
  • Please note that, in the UK, “as a cash shell, a SPAC does not meet the eligibility requirements of a premium listing on the Main Market of the LSE (London Stock Exchange) as it will neither have an independent business nor a financial track record required to meet the requirements of Chapter 6 of the Listing Rules (“Listing Rules”) of the Financial Conduct Authority (“FCA”). In addition, it will not meet the requirements of being a premium listed closed-ended investment fund under Chapter 15 of the Listing Rules as it will not normally have a policy of investment with the objective of spreading investment risk. SPACs can, instead, seek (i) a quotation on the LSE’s AIM market, or (ii) a Main Market standard listing on the LSE under Chapter 14 of the Listing Rules. Both an AIM quotation and a standard listing benefit from lighter regulation than a premium listing on the Main Market.”
  • A report published in 2013 noted that only 19 SPACs had been listed on the European stock exchanges since 2005.
  • Europe priced only one SPAC in the first half of 2019: Gear 1 SpA. This SPAC raised $34.1 million which is considered modest compared to 10 SPAC IPOs in Europe in 2018 which raised $1.45 billion.
  • Gear 1 SpA does not have a website listed within Bloomberg’s company profile database.
  • Gear 1 SpA is connected to Milan.

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