SGX expecting first Spac listing in weeks, hopeful of more IPOs

The first application for a special purpose acquisition company (Spac) to list here is expected in a matter of weeks, said Singapore Exchange (SGX) chief executive Loh Boon Chye yesterday.

Mr Loh told CNBC that the exchange is in talks with several Spac sponsors and is seeing "a robust pipeline" of potential listings. He said some of those applications could crystallise into actual initial public offerings (IPOs) if the markets continue to do well.

The SGX is stepping up efforts to draw more listings after just three IPOs were held in the first half of this year compared with 11 for the whole of last year, noted Deloitte.

The exchange also announced several new initiatives yesterday, including the setting up of an initial $1.5 billion fund to assist high-growth companies in raising capital through public listings here.

Trade and Industry Minister Gan Kim Yong said at the launch of the initiatives that with more home-grown companies, such as gaming chair maker Secretlab and delivery services provider Ninja Van, doing well on the global stage, "we must ensure that they have continued access to a range of financing options to support their expansion plans".

Singapore's efforts to attract more high-growth IPOs come at a time when several local companies have sought listings in overseas markets.

Singapore company Grab, for example, is closing a Spac deal in the United States, while online classifieds platform Carousell, which was recently valued at more than US$1 billion (S$1.35 billion), is also exploring a US Spac listing.

The Straits Times understands that Singapore online car marketplace Carro, also valued in excess of US$1 billion, is also exploring an IPO in the US.

Mr Loh told CNBC that the SGX is hopeful some of these new economy companies will choose to list in Singapore.