SGX needs to take a long hard look at SPACs

IT is easy to see why the markets are so enamoured of special purpose acquisition companies (SPACs).

Commonly referred to as blank-cheque companies, SPACs are listed shell entities whose purpose is to merge with a private business to take the latter public.

SPACs are easy to list, given that they have no underlying business at the point of their initial public offering (IPO).