SGX's proposals on SPAC listings set tone for a more sustainable scheme

THE Singapore Exchange (SGX) has launched its consultation on special purpose acquisition companies (SPACs), and it shows that the bourse has paid close attention to the criticisms of the structure.

With proposed rules such as minimum market capitalisation, limiting redemptions to dissenting shareholders, as well as minimum sponsor equity participation and shareholding moratorium, the bourse has set the tone on what it expects.

Investors should cheer the better alignment of interests, even if the proposed structure raises the stakes for any sponsor planning on listing SPACs in Singapore.