Since 6 December 2021, shell companies created with the sole purpose of acquiring a non-listed operating company (or multiple companies at the same time) within a certain defined time frame can be listed on the Swiss stock exchange through an IPO.
This means, that private companies benefit from faster time to market due to the fact that once an agreement with the SPACs management is reached, the acquisition is submitted for a vote to the investors of the SPAC - if the majority of investors vote in favor, the acquisition is executed. Another advantage is that a target company only negotiates with the SPAC’s management, consequently meaning that the target company doesn't have to go on roadshows to pitch themselves to public investors before the IPO. It also means that there is a higher deal- and price-certainty once an agreement with a SPAC’s management team is agreed. Expertise and experience is kept within the company for a certain amount of time: the regulatory framework foresees lock-up agreements for SPACs founders, sponsors, members – usually very experienced and with a large network – restricting the selling of their shares for at least 6 months after an acquisition.
The VT5 IPO comprised the offering of 20’000’001 class A shares alongside 6’666’657 redeemable warrants, at CHF 10.00 per share plus 1/3 of a warrant per share. The class A shares (ticker symbol “VT5”) and redeemable warrants (ticker symbol “VT5W”) were offered as a package but can be traded separately immediately upon listing on 15 December 2021. At an issue price of CHF 10.00, the placement volume was CHF 200 million. At an opening price of CHF 10.20 per share, VT5 achieved a market capitalization of CHF 222 million, based on 21’764’707 shares listed.