Singapore’s SPAC Listing Regime: A Game Changer Or A Gap Filler?
Securities Regulation Law Journal (2022), Vol. 50, Forthcoming
26 Pages Posted: 1 Dec 2021 Last revised: 3 Dec 2021
Date Written: September 20, 2021
In recent years, special purpose acquisition companies (“SPACs”) have gained great popularity in the U.S. and globally as they offer a fast and low-cost listing route as an alternative to traditional IPOs. In September 2021, the Singapore Exchange (“SGX”) officially launched the SPAC listing regime on its mainboard as the first major bourse in Asia to fully embrace blank-check companies. In doing so, Singapore intends to keep pace with the latest developments of securities market practices and regulations in the U.S. This could cement the city state’s status as a leading international financial center, for Singapore’s SPAC model provides Asia’s booming technology industries with extra financing options at home whilst offering additional investment opportunities to international investors. Against this background, the article undertakes an in-depth and comprehensive examination of Singapore’s SPAC listing framework, based on the macro and micro analysis of specific rules under Singapore’s securities law. It explains why Singapore strives to become Asia’s top SPAC hub. It also evaluates the advantages and potential risks regarding Singapore’s SPAC regime for sponsors, investors, and high-tech corporations. In order to limit the risks for retail investors to make the regime more attractive, the article makes some suggestions for Singapore’s regulators on devising an effective risk mitigation mechanism based on lessons learned from the U.S. regulatory and judicial experience. Finally, the article explores how Singapore’s SPAC model impacts the competitive dynamics of international capital markets and answers the question: whether it is a real game changer or a mere gap filler.
- The paper has been accepted by Securities Regulation Law Journal (2022), Vol.50, forthcoming.
- The paper featured on Columbia Law School’s Blog on Corporations and Capital Markets, available at https://clsbluesky.law.columbia.edu/2021/09/27/why-singapore-exchanges-embrace-of-spac-listings-is-a-game-changer/.
Keywords: Singapore, SPAC, Special Purpose Acquisition Company, Listing Rules, Securities Law, Securities Regulation, Stock Markets, Capital Markets, Singapore Exchange, IPO, Initial Public Offering, Monetary Authority of Singapore
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