19 April 2021
In a recent IFLR article titled "Asian SPACs must tread carefully or face consequences", Ruomu shared her view on the upside of SPACs.
According to Ruomu, “For a de-SPACing transaction, in contrast to a traditional IPO which does not offer pricing certainty until the end of the IPO process, the valuation of the target company is determined at the time of signing.”
“A target company is able to choose the best timing for listing and can do so quickly through a de-SPACing transaction, without having to prepare its own offering materials or go through the roadshow and Securities Exchange Commission review process”, “In addition, there are a variety of ways to structure a de-SPACing transaction to achieve the ultimate commercial goals of the parties while a traditional IPO does not allow much creativity.”
Read the full article.
For further information, please contact:
Ruomu Li, Partner, Morrison & Foerster
rli@mofo.com
