As SGX’s first de-Spac deal nears, the question is whether investors will stay on

THE Singapore Exchange (SGX) is set for its first mainboard listing via a special purpose acquisition company (Spac) business combination, with Vertex Technology Acquisition Corp’s (VTAC) proposed merger with livestreaming operator 17LIVE.

Coming two years after rules for the alternative listing route were unveiled, shareholders of VTAC now have two important decisions to make. They now have to decide whether to exercise their redemption rights and whether to vote in favour of the business combination at the upcoming extraordinary general meeting (EGM).

Independent shareholders have little incentive to vote against a business combination, as they can redeem their pro-rata share of the escrow account regardless of how they voted. The more interesting thing to watch for is how many shareholders actually put their money where their mouth is, and stay invested in the listed company after the de-Spac.