Shirin Tang, Morrison & Foerster's managing partner in Singapore, spoke to Thomson Reuters Regulatory Review (subscription required) about why Singapore is well positioned to list special purpose acquisition companies (SPACs) on the SGX.
"SPACs are an attractive option for capital-raising, particularly for tech-driven growth companies" Shirin said. "Of the SPACs being listed in the United States, there are many with a technology focus." She also noted that for the many investors in these companies, and those companies themselves, with operations in Singapore who are familiar with its business-friendly environment, " Singapore would naturally come to mind when shortlisting options for listing destinations".
"The potential for the Singapore Exchange to allow SPAC listings is welcome news for companies and investors alike in the Southeast Asia tech start-up ecosystem, which has matured to a point where many prominent companies are considering exits via public listings" Shirin said. "If Singapore were to become the first major exchange in Asia to list SPACs, this could add more diversity and vibrancy to Singapore's public equity capital markets, which are dominated by more traditional enterprises and banks as well as real estate investment trusts, rather than technology companies" adding that "This would further enhance Singapore's reputation and competitiveness as a regional finance hub".
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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