A few years ago, SPACs were seen as the next big thing. A kind of shortcut for companies on their way to the stock exchange: faster, more flexible, less regulated than traditional IPOs. However, it is now clear that the euphoria was largely unfounded.
The results of many SPACs are sobering.
- After 1 year: -35% to -50% on average
- After 3 years: often even -70%
- And after 5 years, many disappear completely into insignificance.
There are many reasons for this: companies were often taken over that were not yet ready for the stock market. In addition, there were strong dilution effects and few incentives for quality - the main thing was that the deal went through.
And that is precisely why it is so exciting to look at $RSGN (R&S Group), one of my favorite stocks, a closer look.
The Swiss company went public in 2023 via a SPAC (VT5) - at a time when SPACs were already under pressure internationally. Nevertheless, RSGN has delivered.
- The focus on energy infrastructure fits in perfectly with the current energy transition.
- The customer list (including Siemens and ABB) is impressive.
- The figures? Profitable and growing.
- And the share price? It has remained stable since the merger and has even risen sharply - that alone is exceptional in the SPAC environment.
I looked into the UG, VT5, because I wrote my master's thesis on SPACs in Switzerland.
Of course, it remains to be seen $RSGN It remains to be seen how the business will develop in a volatile market environment. But it is clear that a SPAC does not necessarily have to end in disaster.
Perhaps RSGN is exactly the example that is needed to restore confidence in the model - at least if the foundations and strategy are right.
I would definitely like to see the next SPAC in Switzerland...
Happy investing
GG