More and more real estate companies are looking for enhancing corporate value and optimising operation efficiency through the application of property technology. Ming Yuen Cloud (0909.hk) is one of the examples which got a tremendous valuation when listed in HK stock market last year. Special Purpose Acquisition Companies (SPACs) are the hottest new investment vehicle, how they will change the PropTech sector is just beginning.
SPACs are like reverse Initial Public Offerings. Mutual Fund and Hedge Fund have pooled hundreds of millions of dollars to invest in the spaces. Once the money is pooled, the SPAC goes public as a shell company, where it will begin searching for other “real” companies and so called as “blank check”.
SPACs offer a quicker time to market by reducing the need for some regulatory disclosure. As a shell company, the SPAC doesn’t have much of anything to report to the SEC, shortening the process. It is expected that the Venture Capital investors will strive for exploring more high growth PropTech companies to go public this year.
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