Special purpose acquisition companies (Spacs) have been around for a long time but have become a big topic across the investment world.
A Spac is a corporation formed for the sole purpose of raising investment capital through an initial public offering (IPO). When the Spac raises the required funds through an IPO, the money is held in a trust until the desired acquisition is made.
The FCA says that a Spac will now only have to raise a minimum £100m ($138m, $116m) at an initial listing.
The regulator has also introduced an option to extend the proposed two-year time limited operating period, or three-year period if shareholders have approved a 12-month extension, by six months without the need to get shareholder approval.
The additional six months will only be available in limited circumstances. This is intended to provide more time for a…