Singapore Exchange is reportedly readying to issue easier rules for the listing of special purpose acquisition companies in the city-state.
SGX is preparing to be the first major Asian bourse to accept SPAC listings, according to a «Reuters» report citing unnamed sources.
The exchange’s regulatory arm is now considering easing a minimum S$300 million ($223.2 million) market value proposal for SPACs and a proposal that warrants cannot be detached from underlying shares.
SGX is expected to introduce other measures to safeguard investor interests but would simplify proposed guidelines to maintain attractiveness for SPACs.
IPO Destination
The latest report of looser listings rules follows market feedback that some of SGX’s earlier proposals were too strict.
Singapore is attempting to improve its profile as an IPO destination of choice while Southeast Asian startups have been listing in their home markets or the U.S.
SGX: Six-Year Low Fundraising
Funds raised at SGX fell to a six-year low of $239 million, according to Refiniv data, representing less than 3 percent of Southeast Asia’s total $8.4 billion.
Within the region, Singapore ranked behind Malaysia, the Philippines, Indonesia, and Thailand in terms of funds raised.
