The UK’s Financial Conduct Authority (FCA) recently opened its long-awaited consultation on proposed rule changes to facilitate listing special purpose acquisition companies (SPACs) on the London Stock Exchange. There can be little doubt that a ‘fear of missing out’ is forcing the UK regulator’s hand.
While SPACs, sometimes called cash shells or blank-cheque companies, are nothing new in the UK, they make up a very small proportion of annual listings. The FCA estimates that there are only 33 SPACs currently listed in London, of which two-thirds have a market capitalisation of less than £5m. In comparison, the US – the SPAC market leader – saw nearly 250 SPACs listed in 2020 and $100bn raised in that year alone.
