Can SPACs Work in Lagos?

Can SPACs Work in Lagos?

Capital market players in Nigeria, can SPAC work in Lagos? This thing is working in America and I want to know if that can be done in Lagos. It seems very interesting and could be another way for the alpha.

SPAC (special purpose acquisition company), also known as a ‘”blank check company”, is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process’ (Wikipedia).

SPACs, or ‘SPACs, or special purpose acquisition companies, are shell companies that have no business or assets but are designed to raise money through an initial public offering, or IPO, and then later use that money to merge with or acquire a private, operating company. The raising of money to later buy a company has led to SPACs being called “blank check” companies. SPACs were very popular in the 2020 initial public offering (IPO) markets. Companies like DraftKings (DKNG), Nikola (NKLA), and Virgin Galactic (SPCE) have made headlines and drawn the attention of investors. So, how do SPACs work, and why are they so popular? And should you be concerned about their shaky reputation? Learn why some investors are looking closer at these companies’. (TD Ameritrade)

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