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SGX launches consultation on SPACs, with proposals to minimise dilution and better align interest

Published Wed, Mar 31, 2021 · 05:05 PM

SINGAPORE Exchange (SGX) has launched a consultation on Special Purpose Acquisition Companies (SPACs), with proposals to address some of the risks posed by the listing structure.

SGX Regulation (SGX RegCo) is seeking feedback on a framework that would attempt to reduce some of the risks of excessive dilution for long-term investors, as well as the rush for sponsors to de-SPAC.

"Ultimately, we want our SPACs to be credible listing vehicles that result in successful value-creating business combinations for their shareholders," said SGX RegCo chief executive Tan Boon Gin at a media briefing. "This will increase investor choice, and add depth and diversity to our market."

He noted that SGX has received feedback that Asian SPACs would be of interest to investors and sponsors as it would be in the same time zone as Asian targets that may be more familiar to investors here. "I think if everything goes well, we are targeting to introduce a framework by the middle of the year, but it all depends o…

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