SGX to allow SPAC listings from Friday, with minimum market cap of S$150m

Published Thu, Sep 2, 2021 · 05:30 PM

SPECIAL purpose acquisitions companies (SPACs) will be able to apply for a listing on the Singapore Exchange (SGX) mainboard from Friday, and market watchers said the much-anticipated introduction of listing rules for these corporate shells could potentially liven up the capital markets here.

The new rules, announced on Thursday evening, contain several safeguards first mooted in March - such as minimum equity participation by sponsors at the initial public offering (IPO), to align interests between sponsors and shareholders.

But some rules - such as those for minimum market capitalisation and redemption rights - have been eased compared to proposals in the consultation paper.

SGX Regulation (SGX RegCo) chief executive Tan Boon Gin said the new SPAC framework will give companies an alternative capital fund raising route with greater certainty on price and execution while also "providing investors with more choice an…