With effect from 3 September 2021, Special Purpose Acquisition Companies (“SPACs“) are allowed to list on the Mainboard of the Singapore Exchange Securities Trading Limited (“SGX-ST Mainboard“), providing companies with an attractive alternative capital fund raising route.
The new initiative was announced by the Singapore Exchange Limited (“SGX“) on 2 September 2021, following its consultation paper released in March 2021 that has received over 80 responses, “possibly the highest response rate to an SGX consultation in recent times”, according to SGX. With significant support from the respondents to the SGX consultation for the introduction of a SPACs listing framework in Singapore, SGX proceeds with its proposal to offer SPACs as an investment product in the Singapore capital market. Changes to the SGX-ST Mainboard Listing Rules to implement the SPACs listing framework took effect on 3 September 2021.
This Update highlights the key requirements of the listing framework for SGX SPACs which aim to balance safeguarding investors’ interests against certain concerns posed by the unique features of SPACs and the capital raising needs of the market.
For more information, click here to read the full Legal Update.
