SIX-Group has announced its SIX Swiss Exchange will trade and list Special Purpose Acquisition Companies (SPACs), after approval from “the relevant authorities”, from 6 December.
Companies seeking a listing as a SPAC are principally subject to the same listing requirements as other listed companies at SIX Swiss Exchange, but adapted to the specific characteristics of a SPAC while upholding an “appropriate degree of investor protection”.
SPACs are a shell company founded for the sole purpose of acquiring a non-listed target company— and therefore taking that company public. It first raises capital through an initial public offering (IPO) and then invests this raised capital in the acquisition of a target company, whereby the latter is listed on the stock exchange as part of the acquisition (De-SPAC).
These companies have been in circulation for decades, but only in recent years has it gained widespread attention by market participants and regulators such as the Financial Conduct Authority (FCA).
Christian Reuss, head SIX Swiss Exchange, says: “The SPAC listing standard will complement our ongoing efforts to offer new products and services for current and future issuers. For companies that are ready to go public, SPACs provide an additional option to do so.”
