Two bank check companies commonly known as special purpose acquisition companies (SPAC) are set to start traind in Singapore this week. This mark Singapore to be earlierst Asian nation to embrace SPACs.
According to a Bloomberg report, Singaporean companies raised $1.3 billion in U.S. through IPO offerings in 2021,more than the $1 billion raised in the local exchange, with blank-check firms making up the bulk of the amount in New York amid the allure of heightened valuations.
“It is a good development for the capital markets in Asia that both the Hong Kong and Singapore exchanges have announced their regime for SPACs,” said Johnson Chui, co-head of APAC equity capital markets at Credit Suisse Group AG to Bloomberg.
He also added “we feel there will be a lower number of SPACs in Asia, but their quality will be higher with targets more relevant for the respective local exchanges.”
