Lanvin Group shares plunged 25% in their trading debut

Some 97% of shares in the SPAC set up by Primavera Capital were redeemed, as investors asked for their capital back instead of staying on board for the merger with Lanvin. Investors overall have turned away from SPAC listings, leading to high redemption rates. 

“Investors are looking at this and don’t have a lot of confidence that Lanvin is going to be a successful company,” said Jay R. Ritter, Cordell Eminent Scholar. “[B]ecause there are so few shares [of the company] for public trading, swings in supply and demand can push the price around.”

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