What is a SPAC

A SPAC (special purpose acquisition company), also known as a 「blank check company」, refers to a special way of going public. By establishing a SPAC as a shell company through an IPO, the sponsor intends to raise capital from investors in order to acquire a target company within a limited time frame, which will be taken public quickly through the acquisition.

The SPAC listing mechanism was introduced by the HKEX on December 16, 2021, and took effect on January 1, 2022.