The Value of Social Capital for the Success of SPAC IPOs

This paper explores the role of social capital in contributing to success a new breed organizations known as ‘blank check companies’ or special purpose acquisition companies (SPACs) that are set up solely target and acquire listed fast-track route gain listing status stock market. The is case study Pershing Square Holdings Ltd., St. Peter Port, UK (PSH), which launched SPAC IPOs (Initial Public Offerings), Tontine New York, NY, USA (PSTH), succeeded raising largest from influential investors 2020. Social theory employed provide theoretical structure for analysis. Using annual reports, publicly available information on internet, well media platforms related company its strategy, authors critically analyse highlight how Tontine’s founder his team utilized their structural, relational, cognitive attract gained recognition most successful IPO market found ability departs typical SPAC, choice timing enter resulted an over subscription higher valuation ratings IPO, allowed sponsor be selective investors. first address significance at individual organizational level creating value IPOs. Potential can understanding insights mechanics importance founder’s ensuring investment. Successful will create interest marketplace enhance investment helped private get faster.