SPAC (Special Purpose Acquisition Company) is a US listing method. SPAC companies can conduct IPO listing financing without actual business. After the company goes public, the funds raised in the IPO will be used to acquire an entity.

Many secondary market investors like to use SPAC to indirectly invest in high-growth companies that have not yet gone public. High-growth companies also favor the use of SPAC mergers because of the flexibility of SPAC compared to traditional IPO.