Breakingviews

London SPAC party starts on more sober note

2 minute read

A worker shelters from the rain under a Union Flag umbrella as he passes the London Stock Exchange in London, Britain, October 1, 2008. REUTERS/Toby Melville/File Photo

Register now for FREE unlimited access to reuters.com

LONDON, Nov 23 (Reuters Breakingviews) - London’s late arrival at the special-purpose acquisition company party may be healthier for investors. Investment firm Hambro Perks on Tuesday unveiled plans to launch the UK’s first blank-cheque vehicle since regulators tweaked listing rules to compete with the SPAC boom in the United States read more . Hambro Perks Acquisition Company will initially raise up to 150 million pounds and pursue private technology companies worth between 800 million pounds and about 1.5 billion pounds.

Chief Executive Dominic Perks has mimicked many features common to the SPACs that have flocked to Wall Street, and more recently Amsterdam and Paris. HPAC’s founders will receive up to a fifth of the equity for their efforts, according to a person familiar with the matter. However, they’ll only get 40% of those shares when investors agree a deal. Two remaining 30% chunks are contingent on the shares – initially priced at 10 pounds – reaching 12 pounds and 14 pounds, respectively. For outside investors, there are advantages to being a late arrival. (By Peter Thal Larsen)

Follow @Breakingviews on Twitter

Register now for FREE unlimited access to reuters.com

Capital Calls - More concise insights on global finance:

JPMorgan grows its market share in risky direction read more

Physical retailers strike back at online mob read more

Cevian poops Thyssenkrupp’s hydrogen party read more

Eni IPO offers test case for oil transition plans read more

Billionaires leave $160 bln hole in Biden’s plan read more

Register now for FREE unlimited access to reuters.com
Editing by Swaha Pattanaik and Oliver Taslic

Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

More from Reuters