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The Singapore Exchange has become the first major stock exchange in Asia to allow blank check companies to go public, despite the market being more closely monitored by global regulators.
The special acquisition company (Spacs) will be able to sign up for the SGX list starting Friday, the stock exchange said Thursday.
The entity requires a minimum market capitalization of S $ 150 million (US $ 111 million), which is half of SGX’s previously proposed amount, but the shareholder redemption limit has been removed. After market talks, SGX relaxed some of the originally proposed measures.
Tan Boon Gin, Chief Executive Officer of Singapore Exchange Limited, SGX’s regulatory arm, said: He added that SGX focuses on sponsor quality and records.
Singapore has been struggling for years to attract prominent, fast-growing companies to its exchanges.A series of low liquidity and assessments Enterprise Some of the city’s most promising home-made technology start-ups, such as Sea and Razer, have chosen to go public in the United States and Hong Kong.
Correspondingly, SGX tried to strengthen Other growth areasThis includes increasing the attractiveness of investors as a hub for trading bonds, forex, commodities and derivatives.
It also has Recommended Some of Singapore’s offshore listed companies are considering a “return” or secondary listing in a city-state.
Singapore companies that discussed the move include 2017 New York-listed gaming and online commerce company Sea, ride-haling and food delivery app Grab, and Hong Kong-listed gaming group Razer. The Financial Times reported in June.
Spacs are one of the most popular asset classes in the United States Raised $ 79.4 billion Last year worldwide. Spacs is a shell company that raises funds by listing on the stock market before looking for a target to merge. Last year, major funds, Wall Street celebrities and celebrities, competed fiercely to sponsor promising private targets, primarily high-tech companies.
Jonathan Queck, head of Citigroup’s Singapore investment banking division, said the SGX move would be welcomed by both Spac sponsors and targets.
“Singapore and the region have a huge pipeline of interesting opportunities,” he added.
But the SGX move comes as global Spac enthusiasts have. Began to subside.. While a huge number of transactions have attracted the attention of US securities regulators, some analysts say prices are often too high for speculative ventures.
Singapore Exchange Limited (RegCo) has spent “a considerable amount of time” not only listening to industry feedback, but also participating in recent regulatory developments in the United States, said law firm Gibson Dan. Said partner Robson Lee.
“Singapore’s new basic rules for Spacs include two key elements: to provide investors with the opportunity to participate in the growth and development of promising private companies, while at the same time protecting public investors. Secure protection and [the vehicles]”Lee said.
Singapore exchange to allow Spac listings Source link Singapore exchange to allow Spac listings