SPACs: Everything you need to know about the finance world’s new big thing

Special purpose acquisition companies (SPACs) have been around in some form for decades, but started booming during the Covid-19 pandemic. And the SPAC boom has been sensational. The shell companies designed solely to raise money from investors to buy assets – usually private, unlisted firms – raised more money in 2020 alone than they had over the previous 15 years. The trend continues in 2021, with SPAC fundraising blowing past the previous year's record in the first four months alone. By April 2021, a Southeast Asian tech company was set to take part in the largest SPAC deal ever, leaving regulators across the region trying to decide whether to allow the vehicles into their market. SCMP senior business reporter Chad Bray explains what's behind one of the hottest capital-raising trends of the year.