Editing Babylon Holdings Limited
The edit can be undone. Please check the comparison below to verify that this is what you want to do, and then publish the changes below to finish undoing the edit.
Latest revision | Your text | ||
Line 116: | Line 116: | ||
'''Public listing (October 2020)''' | '''Public listing (October 2020)''' | ||
<small>SPACs, or Special Purpose Acquisition Vehicles, are blank cheque companies that have no commercial operations. Formed by groups of investors, SPACs raise capital through an initial IPO which is then placed in an interest generating trust account. After the management team has identified a particular target company, it will merge with that company using the money in the trust. This allows the target company | <small>SPACs, or Special Purpose Acquisition Vehicles, are blank cheque companies that have no commercial operations. Formed by groups of investors, SPACs raise capital through an initial IPO which is then placed in an interest generating trust account. After the management team has identified a particular target company, it will merge with that company using the money in the trust. This allows the target company has become public without going through an Investment Bank or a traditional underwriter.</small> | ||
<small>During 2020 and 2021, there was a huge surge in the use of SPACs due to excessive liquidity that had arisen from the pandemics over-expansive monetary policy. A key player in the then exponentially growing telemedicine market, Babylon looked to capitalise on its position as soon it could. SPACs offer a significantly faster time to market than traditional routes which seemed most applicable for Babylon at the time. Ultimately, this decision lead to a sharp demise in investor confidence as the share price has dropped 99.99% since IPO.</small> | <small>During 2020 and 2021, there was a huge surge in the use of SPACs due to excessive liquidity that had arisen from the pandemics over-expansive monetary policy. A key player in the then exponentially growing telemedicine market, Babylon looked to capitalise on its position as soon it could. SPACs offer a significantly faster time to market than traditional routes which seemed most applicable for Babylon at the time. Ultimately, this decision lead to a sharp demise in investor confidence as the share price has dropped 99.99% since IPO.</small> |