7 May 2021
Special Purpose Acquisition Companies (“SPACs”) have become increasingly attractive and popular as an alternative listing structure in many jurisdictions. Singapore is attempting to ride this trend by introducing the Proposed Listing Framework for SPACs (the “Proposed SPACs Listing Framework”). While introducing SPACs as an alternative listing structure would increase Singapore’s attractiveness as an investment destination, the Singapore Exchange Limited (“SGX”) is also aware of the inherent risks of the SPAC structure and its uncertainties. SGX is proposing stricter rules than those in other jurisdictions so as to safeguard the interests of all parties involved.
What is a SPAC
SPACs are blank check companies with no prior operating history, operating and revenue-generating business or assets at the time of listing. SPACs are formed by investors to raise capital through an Initial Public Offering (“IPO”) process for the sole purpose of acquiring another target company through a business combination.
Click here to read more.
For more information, please contact:
Dr Qiu Yang, Director | ZICO Insights Law
