How SPACs Go Public
P: Public Raise (IPO)
Welcome back to The SPAC Podcast. We’re continuing our walk through the SPAC process using the SPECIAL framework — seven key stages that define how a SPAC works.
Last episode, we covered S for Sponsor Setup. Today, we’re diving into the second letter: P — Public Raise.
With the sponsor team in place, the next step is to take the SPAC public.The SPAC raises money by selling units to institutional and retail investors. Each unit typically consists of one share of common stock and a fraction of a warrant. The proceeds are placed into a trust account, where they remain untouched unless a business combination is approved — or the SPAC fails to complete a deal in time.
Because there’s no target at the time of the IPO, investors are evaluating the sponsor’s reputation, track record, and stated acquisition focus — whether by sector, geography, or size.
This phase sets the stage for everything that follows.
