Lakestar SPAC I SE (ISIN: LU2290523658) is listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange as of today. The company is a SPAC – a Special Purpose Acquisition Company.
The shares had an initial listing price of €11.15. The issue price was €10.00.
A SPAC listing is an alternative to the classic IPO (Initial Public Offering). It is a shell company without its own operating business. The aim is to raise capital through a listing and use the proceeds to take over a non-listed company within a limited period of time and indirectly take it public. After completion of the transaction, the acquired company has been indirectly listed through the SPAC.
A SPAC must find an attractive acquisition target within a predetermined period, typically 24 months or less. Once the deal is complete, a new listed company is formed (so called De-SPAC).
At Deutsche Börse, SPACs can be listed on the Regulated Market of Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange; General Standard and Prime Standard).
The timeframe for a SPAC is less rigid than is usually the case with an IPO. Also, issuing costs are comparatively low and the company does not face the risk of a high price discount on the day of the listing. In addition, SPACs can be an attractive option in economically challenging times.
Finally, roadshows are less extensive than customary for an IPO.