SPACs Come to Asia
As long as imitation is the sincerest form of flattery, America can rest assured it has the esteem of Asia. Case in point – SPACs. The hottest investment trend of 2020, with some $80b penned on blank checks, shows no signs of fading this year, especially with new signs of Asian investors eager to imitate.
Of the six Asia-focused SPACs so far, all have floated in New York.
But Singapore is pouncing on the business of creating this new variety of corporate shell with extra rich filling. Singapore’s stock exchange has launched a two-month formal consultation to set up SPACs.
Remember, Singapore is not known for bureaucratic foot-dragging when it comes to new financial initiatives, with its rapid adoption and implementation of blockchain services in both public & private sectors, and the Singapore government itself backing an exchange for digital tokens, iSTOX.
Add SPAC capabilities to the new(ish) VCC structure, making it easier than ever for foreign entities to set up and run corporations in Singapore, and you have some enticing prospects for taking advantage of a region just as stricken with IPO fever as America.
“We’re getting more and more enquiries about leveraging Singapore’s ‘Caymans of the East’ initiative to acquire companies,” says Edward Lehman. The advantages of their new VCC structure can be utilized as part of a smart strategy to set up an entity with which to buy and then list an Asian company.”