SPAC-led public listing is on rise in automotive industry

A growing number of startups, mainly in the field of autonomous driving and electromobility, are opting for SPAC-led mergers to become public

As the name suggests, a special purpose acquisition company (SPAC) is formed with the sole purpose to raise capital through an initial public offering (IPO) to acquire or merge with another company to help the latter go public. Such companies are newly founded and do not have any commercial operations, and are therefore also referred to as “blanc cheque” companies.