Malaysia is reviewing its framework for special purpose acquisition companies, or SPACs, amid a surge in demand for such fundraising vehicles globally, according to the nation’s markets regulator.
The popularity of blank cheque companies, which raise money from investors with a plan to acquire another company, has exploded over the past year as they offer businesses a quick route to a listing. In Asia, Malaysia’s AirAsia Group is exploring the possibility of listing its AirAsia Digital or AirAsia SuperApp in the US this year.
The review is part of the Securities Commission’s five-year plan, which aims to make Malaysian markets more relevant and efficient. The move comes weeks after Singapore and Hong Kong introduced rules for blank cheque companies to list in Asia’s main financial hubs.