What are SPACs?
Special Purpose Acquisition Companies (SPACs) are shell (or blank cheque) companies with no prior operating history, business or assets. SPACs raise funds through an IPO to acquire valuable or promising companies within a limited time frame (also known as ‘de-SPAC’). SPACs are typically listed with free detachable warrants, which are exercisable at a premium to IPO price, for an additional upside if the de-SPAC performs well.
Why go public via SPACs?
Going public via SPACs provides three main benefits: A speedy regulatory review, certainty in price when fundraising, and certainty in valuation. These are attractive especially to fast-growing tech companies, as well as other capital-intensive companies.
Singapore has provided extensive joint funding for SPAC initiatives and listings, including an SGD1.5 billion Anchor Fund @65 between the Singapore Government and Temasek Holdings, and an additional SGD500 million Growth IPO Fund from the Economic Development Board
This guide detailing the SPAC listing requirements and conditions in Singapore has been contributed by one of our working partners, Resource Law LLC. Resource Law is the formal law alliance partner of Reed Smith in Singapore.
How can InCorp help?
As committed Specialists, we are here to help you navigate your business listing with ease. In partnership with Resource Law, InCorp can help with the Setup, Secretarial, and Share Registry Services for companies seeking to conduct a SPAC listing in Singapore.
Download this guide to help you navigate SPAC
Contributed by one of our working partners, Resource Law LLC.
Resource Law is the formal law alliance partner of Reed Smith in Singapore.