Charting a new centre

THIS WEEK'S TOPIC: Will special purpose acquisition companies (SPACs) help to turn Singapore into a tech IPO hub?

Ong Pang Thye Managing Partner KPMG Singapore

First impressions last, and that's why SPACs can help forge that reputation of Singapore as a global technology IPO hub. High-profile SPAC sponsors and prominent technology enterprises will draw global attention to the country's viability as a technology-based equity market, reinforcing its capabilities as a technology innovation hub. Success of the first few stocks will also breed further success. Eyes will be on the pioneers - to see if listings are effective, valuations are favourable, and whether investor returns are commensurate with business performance and development, nudging other established technology companies and sponsors to opt for Singapore as their listing destination. Hence, while SPACs may not be a silver bullet, they certainly are a shot in the arm for Singapore to make its memorable pitch of being the exchange of choice, where technology companies can get the ecosystem and edge that they are looking for.