Source of article: Reuters

Writer credits: Anshuman Daga

Singapore will arguably be the first Asian market to permit SPAC listings. Sustained market interests in SPACs will depend on the attractiveness of the Singapore market to potential unicorns and high-tech businesses to list via mergers with SPACs, as opposed to direct listings.

It is thus important that fundamentals to enhance liquidity and valuations in the Singapore market must be addressed in tandem.

In addition to regulatory safeguards, the capital market industry, including directors of issuers, promoters and professional advisers must work together to set and abide by high standards of due diligence to ensure that SPACs do not make tardy investment decisions leading to the acquisitions of lemons – instead of vaunted unicorns – in their haste to de-SPAC before their expiry dates.

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