Singapore’s SPAC Listing Regime: A Game Changer Or A Gap Filler?

TY - JOUR

T1 - Singapore’s SPAC Listing Regime: A Game Changer Or A Gap Filler?

AU - Lu, Lerong

AU - Zhang, Alice Lingsheng

PY - 2022

Y1 - 2022

N2 - 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.

AB - 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.

KW - SPAC

KW - special purpose acquisition company

KW - Singapore

KW - International capital markets

KW - Listing Rules

KW - Securities Regulation

UR - https://dx.doi.org/10.2139/ssrn.3929493

UR - https://clsbluesky.law.columbia.edu/2021/09/27/why-singapore-exchanges-embrace-of-spac-listings-is-a-game-changer/

M3 - Article

SN - 0097-9554

VL - 50

SP - 25

EP - 55

JO - SECURITIES REGULATION LAW JOURNAL

JF - SECURITIES REGULATION LAW JOURNAL

IS - 1

ER -