Guillermo Cruz
Managing Partner
Maquia Capital Agro Fund
/
Startup Contributor

SPACS: How Can Mexico Take Advantage of Wall Street Vehicle?

By Guillermo Cruz | Wed, 06/16/2021 - 09:11

Latin America is getting a piece of the prime Wall Street investment tool they call SPACs, or “blank check” companies. Our private equity firm, Maquia Capital, is bringing this popular vehicle “home,” with the intention of driving innovation and building a bridge between the North American and Latin American markets.

On Jan. 5, Maquia made history with the listing of Benessere Capital Acquisition Corp (NASDAQ:BENE), a US$115 million SPAC (Special Purpose Acquisition Corporation), on the Nasdaq, in the middle of a pandemic, and investors reacted incredibly well. On June 1, Bene, also went public on the Bolsa Institucional de Valores (BIVA), with the ticker symbol (BIVA: BENE) through the listing of its SIC. This makes Benessere one of the four SPACs available in the Mexican market intended to acquire or merge with a private company.

In a few words, a SPAC is designed to raise funds in an Initial Public Offering (IPO) to acquire or merge with a private company. As an outcome of the merger, the private company then becomes public and receives the equity investment.

SPACs have served as a viable option for domestic tech companies to go public. This approach offers several advantages over the traditional IPO roadshow. Starting with the fact that SPACs have significantly lower transaction costs and expedite the time for companies to go public. In addition, institutional investors can redeem their shares and pull their money out with whatever interest has accrued over the time if the investor is dissatisfied with the acquisition decision or if the SPAC fails to find a target within a certain amount of time.

SPACs have fit into the venture capital and private equity ecosystem because they offer the fund's portfolio companies an alternate exit solution. They are disrupting the ecosystem by helping well-established companies reach their growth potential. As well as being an anchor for long-term endurance, they are ready to transform the industry and bring new growth opportunities to the market.

Our firm, Maquia Capital, listed a second SPAC on May 5, 2021, called Maquia Capital Acquisition Corporation (NASDAQ:MAQCU), a US$175 million SPAC, breaking the record size for a SPAC with Mexican managers. MAQCU also has intends to list as a SIC on BIVA so that Mexican investors can have an opportunity to hold the stock. Now, you can hold Benessere SPAC (NASDAQ:BENEU) through Nasdaq and BIVA (BIVA: BENE) and Maquia SPAC (Nasdaq: MAQCU) with BIVA coming soon.

Learn more about Maquia’s leadership team at maquiacapital.com or Benessere’s at benespac.com

Photo by:   Guillermo Cruz