Futu Anyi learned that compared with the traditional IPO, the listing of special purpose acquisition companies is to find excellent companies with funds; The traditional IPO is for excellent companies to find funds. This fundamental positioning difference has created obvious advantages and risks that cannot be ignored in the listing mechanism of special purpose acquisition companies.

The advantages of listing a special purpose acquisition company are:

Short time to market.

Because the special purpose acquisition company is a shell company, its financial statements, information disclosure and issuance application are relatively simple. Special purpose acquisition companies can be listed as soon as 8 weeks after their establishment.

The pricing method is more efficient.

When the M&A transaction is completed, the price is determined by the target company and the special purpose acquisition company through negotiation, not by the underwriter's bookkeeping. Therefore, compared with the traditional IPO, special purpose acquisition companies can usually obtain more flexible and certain pricing, and are relatively less affected by market fluctuations.

The ownership structure is clear.

Because the company of special purpose acquisition has no actual business, the equity structure of the company of special purpose acquisition is relatively clear, and the risk in litigation and debt is relatively low.