Financial firms’ race to list first SPAC in Hong Kong heats up as HKEX decision nears
- HKEX boss Nicholas Aguzin said an announcement on SPAC listings will be made soon after the 45-day consultation ends on Sunday
- SPACs have raised US$139 billion year to date after having mopped up US$81 billion in 2020, according to Refinitiv
Financial firms are busy working with wealthy clients to be among the first to list special purpose acquisitions companies (SPACs) in the city in anticipation of Hong Kong Exchanges and Clearing (HKEX) giving its approval to blank-cheque companies, according to industry players.
SPACs have been one of the hottest fundraising trends since the beginning of 2020, raising nearly US$81 billion last year and US$139 billion this year as of October 28, according to Refinitiv data.
“A number of financial institutions and SPAC promoters, while preparing responses to the consultation paper, are preparing SPACs, with the vision of being among the first to be listed in Hong Kong,” said Victoria Lloyd, a partner in law firm Baker McKenzie’s capital markets practice. “There has been strong interest for SPAC listings on the Hong Kong stock exchange,” Lloyd said.
03:34
SPACs: Everything you need to know about the finance world’s new big thing