SGX RegCo considers consultation on Spacs

SINGAPORE Exchange Regulation (SGX RegCo) is considering to launch a consultation on special purpose acquisition companies (Spacs), possibly as early as this quarter, given the current popularity of such a listing structure.

In a media briefing on Monday, SGX RegCo chief executive officer Tan Boon Gin said the exchange has noticed the popularity of Spacs listings in other markets.

"We have received enquiries and expressions of interest to do so with such a structure," Mr Tan said, noting that SGX had previously consulted on this in 2010.

"We are now considering, given the current popularity of such a listing structure, whether to revive that consultation."

Spacs, also known as blank-cheque companies, are shell companies which raise capital through an initial public offering for the purpose of acquiring an existing firm.

"I think that the interest in Spacs is being driven by the current volatile conditions that we see," Mr Tan said. He noted that an advantage of Spacs is that it provides a faster time to market, and more certainty in terms of price as well as execution. This can make the structure better placed to catch narrowing windows of opportunity.

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"Since 2010, we have had the benefit and experience of observing other jurisdictions that have listed Spacs," Mr Tan said, noting that some Spacs are more successful than others.

"We will examine carefully the hallmarks of success and how we can encourage this structurally," he added. "It is possible that we will have a public consultation as early as this quarter."