Specified Purpose Acquisition Companies (SPACs) in Shipping

Abstract

This study examines how Specified Purpose Acquisition Companies (SPACs) have been used as a financing tool for the shipping industry in period 2004-2013. SPACs that focused on acquisitions in the shipping industry statistically have similar characteristics as the population of SPACs that entered U.S financial markets in the same period. Additionally, shipping companies merge into SPACs for the benefits of acquiring public listing and receiving SPAC’s cash. We construct SPAC Shipping Index and compare its performance with benchmark indices. Finally, we show that managers of SPACs with a focus on shipping on average exhibit return of $154 on $1 invested.

Keywords: SPACs, Specified Purpose Acquisition Companies, Blank Checks, Shipping Finance, Maritime Finance, IPO, M&A, Venture Capital

JEL Classification: G12, G14, G24, G30, G34, R49