By Charlie Conchie
A special purpose acquisition company (SPAC) has bagged $550m in an initial public offering on the London Stock Exchange today in the UK’s biggest listing so far this year.
Admiral Acquisition, a blank-cheque acquisition vehicle firm co-founded by dealmaker Sir Martin E. Franklin, raised $550m in a boost for London’s capital markets after a bruising period for the city.
In a statement, the firm said it had no particular acquisition target in mind and no “specific expected target value”.
“The company’s efforts in identifying a prospective target business will not be limited to a particular industry or geographic region,” the firm said.
Admiral is based in the British Virgin Islands and founded by American-British businessman Sir Martin E. Franklin alongside Robert Franklin, Michael Franklin, Ian Ashken, Desiree DeStefano and James Lillie.
Franklin is known as a pioneer in the world of SPACs having launched several such vehicles, including J2 Acquisition, which raised $1.25bn in a London IPO in 2017.
The IPO comes after a torrid period for London’s public markets, with total cash raised in the first quarter of the year plunging by 80 per cent on last year and 99 per cent down on the first quarter of 2021, according to big four firm EY.
The cash raised by Admiral Acquisition today eclipses the £81m raised in the first three months of the year on the two markets of the London Stock Exchange.
SPAC listings have also been a rare sighting in other major markets over the past 18 months after exploding in popularity in 2020 and 2021.
The vehicles offer firms a route to the public markets via a SPAC merger rather than the rigmarole of an IPO. However, just 20 SPACs were listed in Europe last year versus 45 in 2021, according to data provider Dealogic.
The post SPACs are back: Blank-cheque firm raises $550m in London’s biggest IPO this year appeared first on CityAM.
