SPACs can be profitable, but do your sums: Expert
They offer opportunities to retail investors, start-ups, but quality of sponsors is crucial
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Mr James Tan, chief executive and director of investment company 8i Capital, plans to set up his second Singapore-originated SPAC, which aims to raise US$50 million (S$67 million).
PHOTO: 8i CAPITAL
Despite claims by detractors, Special Purpose Acquisition Companies (SPACs) can provide opportunities for both retail investors and start-up companies to benefit from the flush of liquidity that has enveloped markets.
But investors must go in with their eyes wide open and do their due diligence before investing in SPACs, says Mr James Tan, whose investment company 8i Capital established a "blank cheque" company called 8i Enterprises Acquisition in 2019.