29 September 2021
The Hong Kong Stock Exchange released a consultation paper on proposals to create a new listing regime for special purpose acquisition companies (“SPACs”). SPACs, should the proposed regime be adopted, will be a legitimate form of “cash shell” that raises funds through an IPO with the sole purpose of identifying a business target (“De-SPAC Target”) and negotiating a “De-SPAC” transaction through which the De-SPAC Target achieves a backdoor listing.
The Exchange has stressed that it has not formed any view on whether a SPAC regime should be introduced in Hong Kong and it wishes to use the public consultation to generate discussions and gather public views.
Click here to read more.(Pdf 14 Pages).
For further information, please contact:
Gilbert Li, Partner, Linklaters
gilbert.li@linklaters.com
