04/15/2021 | News release | Distributed by Public on 04/15/2021 03:29
The Autorité des marchés financiers (AMF), the French financial markets authority, has observed a significant increase in the number of SPACs preparing their listings on the Paris stock exchange since the beginning of 2021. The French legal framework and regulatory requirements enable the listing of SPACs to be welcome in Paris, all the while providing appropriate investor protection.
Special Purpose Acquisition Companies (SPAC) are newly-incorporated companies, without any initial operational activity, that go public to raise funds to finance one or more acquisition transactions to be identified following their Initial Public Offering (IPO). SPACs currently make up the majority of IPOs in the US and are attracting increasing interest from investors in Europe. These investment vehicles are created by founders who usually have a solid track record in specific projects in their sector.
In recent years, two SPACs have been listed on the Paris stock exchange, obtaining approval from the AMF.
Euronext Paris'regulated market has a professional segment. Given that this segment is dedicated to qualified investors, it is a suitable listing place for SPACs, which, in their initial phase, mainly target such qualified investors.
French law offers a broad range of possibilities for implementing the usual mechanisms of listed SPACs, similar to those used internationally and in particular in the United States. It thus meets the specific needs of the sponsors of these transactions, whilst offering investors an appropriate level of protection. The various possibilities offered by French law include, in particular, the following:
The AMF has practical experience in these transactions. The AMF points out that prospectuses can be examined, within an efficient timeframe and in English, if the issuer so wishes.
When examining prospectuses for the IPO of SPACs, the AMF takes into account the specific features of this type of structure while ensuring that investors are properly protected, in accordance with its missions.
In this respect, the AMF pays particular attention to the:
The AMF and the entire Paris financial centre are pleased to be able to support these transactions, which reflect and contribute to the attractiveness of France's financial markets.