SGX Finalises SPAC Listing Framework

Singapore Exchange SGX announces rules for SPAC Listing

Singapore Exchange or SGX has reduced the minimum market capitalisation for Special Purpose Acquisition Companies (SPACs) to $150 million from originally proposed $300 million in which sponsors must subscribe to at least 2.5% to 3.5 % of the IPO shares, units or warrants. These are two features of the SPAC framework set by SGX after a consultation drew over 80 responses.

“SGX’s SPAC framework will give companies an alternative capital fund raising route with greater certainty on price and execution. We want the SPAC process to result in good target companies listed on SGX, providing investors with more choice and opportunities. To achieve this, you can expect us to focus on the sponsors’ quality and track record. We have also introduced requirements that increase sponsors’ skin in the game and their alignment with shareholders’ interest,” said Tan Boon Gin, CEO of Singapore Exchange Regulation (SGX RegCo).

Read press release from SGX here.