13 July 2022

Allen & Gledhill Partners Tan Tze Gay and Rhys Goh and Counsel Kern Wong co-authored “SPACs in Singapore: A look into the pioneering SGX-listed SPACs”, published by IFC Media.

Against the backdrop of growing global interest in special purpose acquisition companies (“SPACs”), the Singapore Exchange (“SGX”) introduced new rules that permit the listing of SPACs on the SGX Mainboard, with effect from 3 September 2021, making it the first stock exchange in Asia to allow SPAC listings. A SPAC is a company with no prior operating history and revenue-generating business or asset at the point of its initial public offering (“IPO”), and which raises proceeds for the sole purpose of undertaking a business combination in accordance with the business strategy and acquisition mandate disclosed in the prospectus issued in connection with its IPO.

In January 2022, SGX welcomed its first three SPAC listings on the SGX Mainboard, all of which Allen & Gledhill had the privilege of advising on, in various capacities. Leveraging on the authors’ close involvement in the three listings, this article discusses notable characteristics of and differences between the three SPAC IPOs, and the anticipated impact on the SGX SPAC framework and potential SPAC issuers going forward.