First Nordic SPAC Will Go Public March 25

Nordic financial services group SEB is the global coordinator and bookrunner of Scandinavia’s first special purpose acquisition company (SPAC) and is now building out a corporate finance unit, Bloomberg reported.

The SPAC plans to go public in Stockholm on March 25, Bloomberg reported. The deal was announced by investment firm Bure and comes as SPACs are seeing a pronounced popularity in the U.S.

SEB Managing Director Per Thurezon said the Scandinavian economy may not be as enthusiastic in its embrace of SPACs, but if SPACs catch on in the region, there could be a need “to think about how to manage that and perhaps increase the number of employees,” according to Bloomberg.

He said SEB would be looking at trying to expand either way. And the company is looking to add 5 percent to 10 percent to the 40-person unit, Bloomberg reported.

The SEB SPAC will be different from U.S.-style ones, according to Bloomberg, as it will have a longer lock-up period as investors will give Bure three years to find an acquisition target as opposed to two, which is standard in the U.S.

Jan Olsson, who is the North American director for Deutsche Bank, told Bloomberg SPACs are “here to stay” and investors in the area will eventually see the merits of the style. He said there could be room in Sweden for U.S.-style SPACs.

SPACs, which refer to blank-check companies formed solely to help other companies get go public, have been attracting all manner of investments, including from famous people. Among those who have gotten on board are Jay-Z, Shaquille O’Neal and Ciara Wilson, PYMNTS reported.

According to analysts, those types of people often view their involvement as a challenge similar to gambling.