• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Singapore Exchange’s SPAC rules seen giving market much-needed boost

September 3, 2021 by David Barret Leave a Comment

September 3, 2021

By Anshuman Daga

SINGAPORE (Reuters) – Singapore Exchange’s new rules for special purpose acquisition companies (SPACs) are likely to help it attract regional funds and fast-growing firms, as it seeks to revitalise a staid market for equity listings, market participants said.

Some of them expect Southeast Asian startups, especially from the tech sector, to take advantage of SGX becoming the first Asian bourse to allow SPAC listings since the investment frenzy in SPACs started in the United States last year, although the interest is peaking there.

SPACs raise money on stock markets to buy private companies, giving those businesses a quick and cheap route to a listing.

“As long term investors in building companies, we are confident this is a useful tool to have in our quiver,” said Loke Wai San, co-founder and managing director at Novo Tellus Capital Partners, a Southeast Asian industrial-technology focussed buyout fund.

Loke said Novo Tellus was optimistic of listing a SPAC within six months and had been studying potential targets as part of a so-called deSPAC process.

SGX’s rules, which come into effect from Friday, https://ift.tt/3t6ZZNO follow an initial proposal it issued in late March that had stricter rules than U.S. markets.

SGX has now halved the minimum market capitalisation for SPACs to S$150 million ($112 million), and allowed warrants to be detachable from underlying shares – a move seen as making SPAC investments potentially more attractive.

Lawyers Nick Davies and Laura Luo at King & Wood Mallesons said the changes would make a larger pool of target companies eligible for deSPAC listings on SGX, and potentially enable SGX SPACs to provide much needed capital to hit a “mid-market” sweet spot for would-be SPAC targets.

SGX shares rose 1% in a weak broader market on Friday.

“Companies in the real estate, consumer and infrastructure space have traditionally fuelled the growth in Singapore’s capital markets,” said Vineet Mishra, JPMorgan’s co-head of Southeast Asia investment banking. “By expanding the products range to include SPACs, there might be the opportunity for fast-growing companies to also access these markets.”

Hampered by a small base of retail investors, SGX has struggled to capture big regional IPOs, but as Southeast Asian startups begin to attract global attention and raise funds at huge valuations, SGX is spotting an opportunity.

The moves also come as the city-state provides funding and light-touch regulation and establishes itself as a fintech hub.

“The feedback from the market is very clear that Asian SPACs for Asian targets make a lot of sense because the investors here are more familiar with the targets and are in the same time zone,” said Tan Boon Gin, CEO of Singapore Exchange Regulation.

Across Asia, Hong Kong and Indonesia are studying the listing of SPACs, while Britain has eased rules https://ift.tt/3Bu1BnR. But SPACs have lost some of their lustre in the United States as regulators there have been clamping down on them.

“We are actively watching SPAC sponsors that come out to list on SGX,” said Darius Cheung, CEO of property portal 99.co, a potential IPO candidate.

($1 = 1.3423 Singapore dollars)

(Reporting by Anshuman Daga Editing by Sumeet Chatterjee and Mark Potter)

Source Link Singapore Exchange’s SPAC rules seen giving market much-needed boost

David Barret
David Barret

Related posts:

  1. China slams ‘incorrect’ politics in show business, high actor pay
  2. Get 50B of data for just £12 a month with this unbeatable Smarty SIM only deal
  3. FTC bans spyware maker SpyFone, and orders it to notify hacked victims
  4. The only one way to tackle ransomware: Zero Trust

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Are There Colors That Only Exist In Our Brains? Find Out More In Issue 35 Of CURIOUS – Out Now
  • If They Take Fluoride Out Of The Water, What Could Happen To Americans’ Teeth?
  • Paraglider Accidentally Flies Into The “Death Zone” 8,500 Meters Up – And Survives
  • World’s Oldest Fingerprint, Bioacoustics Could Give Us “A Peek Into The Language Of Wolves”, And Much More This Week
  • Please Stop Jamming Coins Into The Rocky Cracks Of Legendary Giant’s Causeway
  • We’re A Step Closer To Knowing Who Made The Earliest Known Stone Tools
  • These Little Birds Are All But Extinct – But There Is Still Time To Save Them
  • The Three Types Of Female Orgasm
  • Elon Musk Has Announced His Bombastic Plan To Get Humans To Mars
  • China Unveils World’s Largest Offshore Wind Turbine With Hub Height Of 185 Meters
  • Oldest Fingerprint, AI Decoding Wolf Language, And Injecting Life On Other Worlds?
  • “There Are Glimmers Of Hope”: Search For One Of The World’s Most Endangered Pigeons Just Scored A Big Win
  • Earth Has A 1-In-100,000 Chance Of Being Ejected From The Solar System Due To A Passing Star
  • “Necrobotics” Turns Dead Spider Corpses Into Biohybrid Robots
  • Why Even Traveling Close To The Speed Of Light Is So Hard
  • Peer Into The Universe’s Distant Past Thanks To JWST’s Longest-Exposure Photo Yet
  • First Evidence For Chubby Cheeks In Dinosaurs Challenges Our Understanding Of How They Chewed
  • The 2021 “Heat Dome” Killed Her Mother. Now, She’s Suing The Oil Companies Responsible
  • Two Of The Most Destructive Termites Got It On, Sparking Hybrid Threat In Florida
  • The Mad Gasser of Mattoon: A Story Of Anxiety And Hysteria In America’s Heartland
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version