I read on https://www.kiplinger.com/investing/stocks/601168/spacs-to-buy:
Generally, the SPAC (Special-purpose acquisition company) will offer at $10 per "unit." Each unit includes one share of common stock and one-fourth of one warrant, which entitles the holder of one redeemable warrant to buy a share at, say, $11.50, or some other higher price determined by the sponsors.
Why do SPAC units typically start trading at 10 USD?
I would guess that $10 pricing just evolved from early SPACs issuing at $10 and others just followed.
It has no direct relevance but in the 90's, I participated in many traditional IPOs. Some boutique companies made it a practice of pricing their IPOs (with warrants) at the same price. Note that these were often lower tier companies of questionable quality. The low price made them attractive to the lower capitalized traders.
Coincidentally, last week I was looking deeper into SPACs. I culled about 180 names from my database that included "Acquisition" in the company name. Since most of them are trading in the $10 area, I assumed that most were SPACs. Have you come across any source that lists all existing SPACs? TIA.
