Thursday, June 30, 2011

Investment - SPAC

SPAC - Special-Purpose Acquisition Company. As what it name be, it's kind of company that using only its name, to be listed publicly and get investment fund from the market.

It does not have any operating business, instead it is only an empty-shelf company which will be listed, funded, and buy business from other developed private companies.

Malaysia has its first SPAC, Hibiscus Petroleum, will announce its IPO soon. Not very sure when, but soon. It decides to raise from 100million to 300million from the IPO. I wonder, who will invest in this kind of company?

It doesn't have history, no ex-financial report, no management background, but with a name that tries to attract investors. Will it succeed raising so much fund?

By the way, rather than buying this IPO, which is risky for me, I prefer the developed OLD Town, which has announced IPO as well. However, I just found out HleBroking doesn't have e-IPO...=.= Can't apply now.

Anyway, just observe and see what the market will be for the next half year of 2011. Quiet market, let's wait and see the long term result.

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