Public Shares

Public shares are the equity held by outside investors in a SPAC — the shares sold in the IPO at $10.00 per unit, separated from units after 52 days, and traded on the exchange under the SPAC's primary ticker. They are the only shares with redemption rights, meaning their holders can tender them back to the trust for a pro-rata share of the trust account at any shareholder vote.

This redemption right makes public shares unique. Each share has a floor value equal to the per-share trust balance (the "redemption price"), which typically exceeds $10.00 as the trust accrues interest from T-bill investments. In a high-rate environment, shares in long-searching SPACs can have redemption prices above $11.00. This floor creates a near-riskless return profile that attracts SPAC arbitrage funds, who buy shares at or below trust value and plan to redeem regardless of deal quality.

Public shares are classified as Class A common stock, distinct from the sponsor's Class B founder shares. Both classes typically carry one vote per share, giving public shareholders a collective 80% voting interest. However, because many public shareholders are arbitrage funds who hold for the redemption and don't vote, effective voting control often rests with the sponsor and allied holders.

After the de-SPAC closes, the Class A / Class B distinction dissolves — founder shares convert to Class A, and all shares become a single class. The post-merger trading float depends on how many public shares were redeemed, how many PIPE shares were issued, and whether any founder shares were forfeited.