SOURCE / ECONOMY
SGX seeks market feedback on proposed regulatory framework for listing of SPACs
Published: Mar 31, 2021 07:48 PM
A cyclist rides up the Jubilee Bridge before sunrise in Singapore, on March 16, 2021.(Photo: Xinhua)

A cyclist rides up the Jubilee Bridge before sunrise in Singapore, on March 16, 2021.(Photo: Xinhua)





The Singapore Exchange (SGX) is seeking market feedback on the proposed regulatory framework for the listing of special purpose acquisitions companies (SPACs) on its main board.

The listing of SPACs has attracted the attention of mainstream markets because of its accelerated listing and price certainty for the valuation of target companies. 

"When reviewing the feasibility of listing SPACs, we noticed that the recent development of SPACs has highlighted certain risks, especially excessive dilution of shares", Tan Boon Gin, CEO of SGX RegCo said.

The purpose is to create credible listing tools, increase investors' choices, and bring shareholders a successful and value-creating portfolio," he added. 

SPACs have had a good run in the US in the past year or so. US SPACs have raised $64.2 billion through IPOs so far this year, or 76 percent of the total equity raised by IPOs in the market, according to Reuters.

Some of the possible targets being mentioned are Asian targets. We have received enquiries from potential sponsors and market professionals on whether SGX would consider allowing SPACs.   

Asian SPAC would be interesting to investors and sponsors because it they would be in the same time zone as the Asian targets, which themselves may also be more familiar to the investors here, he noted. 


blog comments powered by Disqus