Global sponsors eye entry as Singapore seeks to kickstart SPAC party

The SGX Centre at Shenton Way. Credit: DealStreetAsia

Investors based in the US, Australia and China have evinced interest in sponsoring special purpose acquisition companies (SPACs) in Singapore amid efforts by the city-state to breathe new life into its bourse. 

A SPAC, also known as a blank cheque company, is formed for the sole purpose of raising money through an initial public offering (IPO) to acquire an existing company. Sponsors are the initiators of a SPAC and put in a nominal investment. They are paid in the form of a “promote,” which usually involves 20% equity in the SPAC.

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