Spacs are formed to raise capital through initial public offerings (IPOs) for the sole purpose of acquiring operating businesses or assets. Such acquisitions may be in the form of a merger, share exchange or other similar business combination (BC) methods. Prior to an initial BC, spacs are listed investment vehicles with no prior operating history and revenue-generating business or asset at IPO.
In light of market developments, increased interest and potential M&A opportunities in the Asia Pacific, Singapore Exchange (SGX) has launched the Special Purpose Acquisition Companies Framework to introduce a new listing vehicle to the Singapore market. SGX believes that the introduction of spacs will generate benefits to capital market participants and become a viable alternative to traditional IPOs for fundraising in Singapore and the region. This special edition of SGX research series: 10 in 10 provides an introduction on spacs and its typical lifecycle.
1. What are special purpose acquisition companies (spacs)?
