SGX to Ease Rules for SPAC Listings
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Singapore Exchange is reportedly readying to issue easier rules for the listing of special purpose acquisition companies in the city-state.
SGX is preparing to be the first major Asian bourse to accept SPAC listings, according to a Reuters report citing unnamed sources.
The exchange’s regulatory arm is now considering easing a minimum S$300 million ($223.2 million) market value proposal for SPACs and a proposal that warrants cannot be detached from underlying shares.
SGX is expected to introduce other measures to safeguard investor interests but would simplify proposed guidelines to maintain attractiveness for SPACs.
The latest report of looser listings rules follows market feedback that some of SGX’s earlier proposals were too strict.
Singapore is attempting to improve its profile as an IPO destination of choice while Southeast Asian startups have been listing in their home markets or the U.S.Funds raised at SGX fell to a six-year low of $239 million, according to Refiniv data, representing less than 3 percent of Southeast Asia’s total $8.4 billion.
Within the region, Singapore ranked behind Malaysia, the Philippines, Indonesia, and Thailand in terms of funds raised.
Questions & Answers
Q.What specific rule changes is the SGX regulatory arm considering for SPAC listings?
What specific rule changes is the SGX regulatory arm considering for SPAC listings?
The regulatory arm is considering easing a proposed minimum S$300 million market value for SPACs. It is also looking at relaxing a proposal that warrants cannot be detached from underlying shares, based on the report.
Q.Why is the Singapore Exchange seeking to ease its SPAC listing rules?
Why is the Singapore Exchange seeking to ease its SPAC listing rules?
The SGX is easing rules following market feedback that earlier proposals were too strict. Singapore aims to improve its profile as an IPO destination, as funds raised at SGX recently fell to a six-year low.
Q.How does Singapore's performance in funds raised compare to other Southeast Asian markets?
How does Singapore's performance in funds raised compare to other Southeast Asian markets?
Singapore raised $239 million, which was less than 3 percent of Southeast Asia’s total $8.4 billion. It ranked behind Malaysia, the Philippines, Indonesia, and Thailand in terms of funds raised.
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