Finance
Go Public Without a Business? It Can Work If You’re an Energy Star
Investors have flocked to SPACs, which raise money to buy other companies, but fewer top oil executives are getting into the game.
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For the past two years, the hottest way to start a new oil company in the U.S. has been asking investors to write a blank check. Just launch a publicly traded corporation called a special purpose acquisition company—or SPAC—which has no other business than to raise money and then find another venture to acquire or merge with.
Why would investors buy stock in a blank check? If the SPAC is run by a star energy executive with a record of spotting valuable oil-patch assets, it could be a chance to get in on a big deal early.