SPACs On The Rise In Asia

There is significant interest in launching special purpose acquisition companies' (SPACs) IPO transactions from mainland China, Hong Kong, Singapore, North and Southeast Asia-based financial institutions, investment banks, private equity and venture capital funds, corporate finance firms, asset management firms, promoters and private investors.

To date, the NYSE and Nasdaq are the stock exchanges where most of the SPAC IPOs have been launched. Global SPAC promoters, including Asia-based ones, have sought market exposure and access to the immense US investor pool of capital on such exchanges, particularly the US and the global institutional and high net worth investor pool.

Following the implementation of a new regime to permit the listing of SPACs on the Singapore Stock Exchange (SGX), and with SPAC listings also soon to be possible on the Stock Exchange of Hong Kong (SEHK), there are now some further compelling options for Asia-based SPAC promoters and investors.