Year of the SPAC: Matt Davey, Tekkorp Digital Acquisition Corp

| By Robin Harrison

In 2022, Matt Davey wants to see less noise and volatility around special purpose acquisition companies (SPACs), and more focus on their core purpose of ensuring high quality companies can secure market listings.

Tekkorp Digital Acquisition Corp chief executive Davey points out that SPACs are not a new phenomenon; the framework has been around for more than a decade. He says their explosion in popularity led to units, shares and warrants soaring to “extreme” values in the first quarter of the year.

This was then followed by a rather extreme sell-off – and that volatility is not helpful. “SPAC stock should be stable, backed by cash, until the sponsors announce an agreement,” he explains.

“At that point the market should take a view.” Davey says this popularity will likely continue to ebb and flow in 2022, though he hopes for less noise around the sector, and for SPACs to be treated as “just a great source of capital and a clever way to bring some companies public”.

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