Is Singapore the Asian hub for SPAC?

Singapore

SPACs (or Special Purpose Acquisition Companies) have existed for decades on public markets. SPACs, allows investors to pool resources in a public investment vehicle with the intent to acquire existing businesses, but this is far from being a new concept.

However, they have recently become one of the hottest market trends in the private equity space. Globally, SPACs have raised nearly US$100 billion from IPOs in the first quarter of 2021, already surpassing all of 2020, according to financial data provider Refinitiv. In the US alone, SPACs represented about 60 percent of all IPOs in 2020.

In Asia, markets are embracing the SPAC listings boom.  Some of the highest-valued Asian firms have announced plans for U.S.-based SPAC listings, including Japan's SoftBank Group Corp, Singapore's Vickers Venture Partners, and Hong Kong's Provident Acquisition. To attract SPAC sponsors, the Singapore Exchange (SGX) has introduced its SPAC listing framework effective from 3 September 2021.  The objective is to provide an alternative capital fund raising route and to have good target companies listed on SGX, providing investors with more choice and opportunities.  This new framework will position Singapore as the regional first-mover and is poised to attract the Asian SPACs listing.

About the webinar

In order to understand the SPAC Framework in Singapore and the newly acquired popularity of SPACs in Asia, IQ-EQ's Jimmy Leong, hosted a webinar on 9 November 2021 with

  • Mohamed Nasser Ismail, Senior Vice President, Global Head of Equity Capital Markets, Global Sales and Origination, at the Singapore Exchange (SGX) and
  • Selina Cheung, Managing Director, Co-Head of ECM Asia and Head of Private Financing Markets, Asia Pacific, UBS

 

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