Catch: Asian travel agents plan world’s largest SPAC IPO

Catch: Asian travel agents plan world's largest SPAC IPO

Until now, the Grab Company has mostly been in Asia Known. But the start-up is over there Singapore One of the most popular food delivery and travel brokerage services in many countries. According to “Wall Street Journal” The young company now wants to go public with the help of a so-called Spacs.

This statement is for a special purpose acquisition company: for a listed company that can raise capital from investors and promises to spend money on acquiring the company within a certain time. The target company – in this case the catch – slips into the empty space shell first and can save itself a tiring trip to the stock exchange.

Such space has long been considered an American phenomenon. But the creation of the company has recently become very popular in the busy tech scene. Grab’s Spec will set a new record in the IPO boom. Because the company is valued at up to $ 40 billion.

Tech Investor will provide Ultimate Capital space. Parallel to the IPO, Grab should collect three to four billion dollars from other donors, the “Journal” writes. The deal should be officially announced next week – if it doesn’t break through by then.

Spacs are considered a practical vehicle to simplify initial public offerings. But they also come with many risks. According to A study by the American elite Stanford University Spacks are true money-burning machines.

After the successful acquisition of a company, the shares of Spacs should actually be in demand. But on average, Spack’s prices fell by a third after a deal. Researchers attribute this mainly to heavy costs that investors can hardly foresee. Spacs usually collected ten dollars per share when it went public. When the target is handled, only $ 6.67 of this is left in cash.

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