Since January 2020 there were over 400 SPACs in the USA alone raining over 87 billion dollars. SPAC (or special purpose acquisition companies) are not new but they are now attracting interest in Asia and are offering an alternative platform from the traditional IPO. This explosive growth in these “blank cheque” entities has led to some of the key stock exchanges in the region to re-think their stance on allowing SPACs to be done looking at changing their regulations to meet this massive market.
Asia is emerging as a hotspot for SPAC acquisitions with many upcoming and ready to be listed Tech Unicorns and start-ups in Asia looking to go public now. As a result, many Bourses across Asia are moving to change their rules to allow the listing of SPACs with hopes to win over local tech unicorn listings. It’s not only the Bourses that are looking to get into the action with key banks now setting up SPAC teams across the region to tap into these opportunities as well.