SPACs appear to be losing sheen in Singapore, Hong Kong

SPACs appear to be losing sheen in Singapore, Hong Kong

FILE PHOTO: An SGX sign is pictured at Singapore Stock Exchange July 19, 2017. REUTERS/Edgar Su

Special purpose acquisition companies (SPACs) appear to be losing their luster in Hong Kong and Singapore after the bloom already came off the rose in the U.S. amid expectations of stricter regulations and bearish sentiment in global financial markets.

The sole goal of a SPAC is to list on a stock exchange and then use the proceeds raised to buy a company that actually operates a business within a certain time frame, a deal known as “de-SPAC.” The idea is that this is usually quicker and cheaper than the target company listing through a traditional IPO.

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