Rise in cash box IPOs signals market overheating

Sat, 21 Nov 2020

The proliferation of Spac IPOs, also known as blank-cheque companies, is a clear sign that Wall Street, and other major sharemarkets are entering the overheated stage.Spac stands for ‘special purpose acquisition company’ and they were a major feature of the NZX boom and bust in the 1980s and many other overheated sharemarkets.Spacs list as cash boxes with their prime objective being to use their cash to pursue deals, either acquisitions or mergers.Unlike Wall Street’s pump and dump schemes of the 1980s, the cash is placed in a...

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