When the SPACs come marching into Asia

The rapid pace at which special purpose acquisition companies (SPACs) are raising money is putting regulators across the region in a quandary: either further accommodate an unproven investment structure or risk being left behind.

When the SPACs come marching into Asia

March 30, 2021

SPACs are grabbing media space as quickly as they are raising capital. Better known as blank-check companies, they have grown exponentially in only a matter of years. In the first few months of 2021, for example, SPAC deals in the US surpassed the near-$80 billion accumulated in 2020, which was already six times more than during 2019.

Without any commercial operations, SPACs offer an alternative route for start-ups looking to become a listed entity. Besides avoiding the often lengthy and costly ordeal of applying via a traditional initial public offering IPO, benefits include attaching forecasted earnings projections which would otherwise be forbidden.

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