Singapore: Introduction of the Listing Framework for SPACs

The much anticipated regulatory framework for the listing of Special Purpose Acquisition Companies (SPAC) in Singapore was issued by the Singapore Exchange (SGX) on 3 September 2021, less than half a year after the Consultation Paper on Proposed Listing Framework for Special Purpose Acquisition Companies was initially issued by the SGX on 31 March 2021.

The consultation closed on 28 April 2021 and the SGX’s responses to comments on the consultation paper can be obtained from the following link.

The new framework is designed to give companies an alternative capital raising route with greater certainty on price and execution. The SGX aims to attract the listing of good target companies and will focus on the sponsors’ quality and track record as part of its review process. Requirements that increase sponsors’ skin in the game and their alignment with shareholders’ interest have also been introduced for this purpose.

The listing of SPACs are expected to present exit opportunities for private equity funds in the region, given the ever growing list of companies from Southeast Asia that are exploring initial public offerings.

Key features of the framework are outlined in the table below.

To download a PDF version of this update please click here.

For more information please contact Luc Delauzun.