How can investors invest in SPACs?
We have already answered the following questions: What are SPACs and how do SPACs work? But what is most important for you as an investor is how you can invest in a special purpose acquisition company – we will reveal that in a moment. Before that, we should be clear that SPACs in Europe and in Germany are still in their infancy. An example should clarify this:
According to Deutsche Börse, Helikos was the first German SPAC IPO in February 2010. A year later, this empty stock market shell was taken over by the Exceet Group, a technology company specializing in electronics and security systems. But after the announcement of the merger, the SPAC share developed anything but well, the Exceet Group share fell to less than 3 euros at times – and so far it has not reached the value it had at the SPAC IPO: 10 euros.
But despite this less successful SPAC IPO many years ago, it is spilling over Stock market hype from the USA now back across the pond to Europe. Why? Because SPACs offer great opportunities for both small companies that are allowed to slip into a SPAC wrapper and for equity investors. If the plan works, investors expect high returns.
If you are interested in investing in SPACs, then this is going to be particularly interesting for you. Below we answer how to do that select correct SPACwhat you a recognize a promising SPAC IPO and how you eventually Buy SPAC shares be able!
Tip: You can find out more about the opportunities and risks of SPAC investments below. There we have the main advantages and disadvantages to SPACs listed for you as an investor.