The Singapore Exchange (SGX) could have had about a decade’s worth of special purpose acquisition company (SPAC) listings. In 2010, the bourse operator was mulling whether it should allow such listings here. But as it turned out, SGX did not go through with it as the “conditions were not right” then, says Tan Boon Gin, CEO of Singapore Exchange Regulation (SGX RegCo).

Yet now that SPAC listings are booming in the US, the stock market regulator is rethinking its position. Tan says SGX RegCo has received enquiries from market participants on the structure. Having a slice of the action here could bring large companies to list on the local stock market, of which SGX has long desired. According to Refinitiv, US SPACs have raised $64.2 billion through IPOs so far this year, or 76% of the total equity raised by IPOs there.

To that end, SGX RegCo has put out a consultation paper to seek market feedback on whether SPACs should be introduced on SGX. The stock market regulator aims to seek a balanced approach that safeguards investors’ interests, while enabling an innovative way to meet the capital raising needs of the market.

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