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Singapore Permits SPAC Listings

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Blog

Singapore Permits SPAC Listings

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1 Min Read

Authors

Michael J. BlankenshipJ. Eric JohnsonJohn P. NiedzwieckiBen D. Smolij

Related Locations

Houston

Related Topics

Special Purpose Acquisition Companies (SPACs)
Singapore

Related Capabilities

Capital Markets

Related Regions

North America

September 8, 2021

On September 2, 2021, the Singapore Exchange (SGX) announced new rules that would permit special purpose acquisition companies (SPACs) to list beginning on September 3, 2021. To qualify for a listing on SGX, a SPAC must meet several listing criteria, including:

ItemRequirement
Minimum Market CapitalizationS$150 million (~US$111.6 million)
TimingA business combination (i.e., de-SPAC) must take place within 24 months of a SPAC initial public offering (IPO), with an extension of up to 12 months in certain circumstances.
Moratorium on Sponsor SharesSGX would issue a moratorium on sponsor shares from IPO to de-SPAC, a six-month moratorium after the de-SPAC, and for certain issuers, an additional six-month moratorium on 50% of shares.
Sponsor SubscriptionsSponsors would be required to subscribe to at least 2.5% to 3.5% of the IPO shares, units, and warrants, depending on the market capitalization of the SPAC.
Independence RequirementsDe-SPACs would be permitted if more than 50% of independent directors approve the transaction and more than 50% of shareholders vote in support of the transaction.
WarrantsWarrants issued to shareholders will be detachable, and the percentage dilution to shareholders from the conversion of the warrants issued during the IPO would be capped at 50%.
Redemption RightsAll independent shareholders would be entitled to redemption rights.
Sponsor PromoteA sponsor’s promote limit would be up to 20% of the shares issued during the IPO.


Mohammed Nasser Ismail, the head of SGX’s equity capital markets, commented, “We are actively engaging with potential sponsors and are expecting a robust pipeline of Asian-focused SPACs.” Singapore is joining South Korea and Malaysia in permitting SPAC listings, and Hong Kong and Indonesia are currently contemplating a similar move.

Capital Markets Watch will continue to monitor developments on SPAC listings in Singapore and will provide our readers with updates as they become available.

Related Professionals

Related Professionals

Michael J. Blankenship

J. Eric Johnson

John P. Niedzwiecki

Ben D. Smolij

Michael J. Blankenship

J. Eric Johnson

John P. Niedzwiecki

Ben D. Smolij

This entry has been created for information and planning purposes. It is not intended to be, nor should it be substituted for, legal advice, which turns on specific facts.

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