# Special Purpose Acquisition Company

**IRI:** https://folio.openlegalstandard.org/R9uzjRTP8QeY8QG9zT9rMU0

## Labels

**Preferred Label:** SPAC

## Definition

A Special Purpose Acquisition Company (SPAC) is a shell corporation specifically created to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Once the funds are raised, the SPAC identifies a target company to acquire, and if the acquisition is successful, the SPAC effectively takes the acquired company public.

## Sub Class Of

- https://folio.openlegalstandard.org/RCua1MtzwNcjfYov8VFcoV3

**Deprecated:** False