SC: SPAC applications will be based solely on existing guidelines

PETALING JAYA: The flurry of activity surrounding Special Purpose Acquisition Companies (SPACS) took a hit recently, when it was discovered that the regulator was taking a strict approach on deciding whether to approve their listing, sources said.

“Even though none of the promoters have submitted their applications, initial discussions between their advisers and the Securities Commission (SC) has given the impression that the regulator is going to be quite picky over which SPAC is allowed to list,” said one source. When contacted, the SC played down such concerns, expressing the view that applications would be solely based on the existing SPAC guidelines.

“There is no new policy on SPACS. We will approve any application that conforms to the requirements stipulated under the SPAC guidelines. To date we have not received any formal applications for SPAC other than Hibiscus Petroleum Bhd,” an SC spokesperson said in an emailed reply to Starbiz.

Starbiz reported earlier this week that at least four different groups of entrepreneurs were in various stages of putting together applications to have their SPACS listed on Bursa Malaysia, quoting banking sources.

The SPACS - which are essentially shell companies raising funds for the purpose of acquiring businesses - are said to cover industries ranging from coal mining, greenfield property development and palm oil cultivation to the oil and gas space.

The interest is said to be partly spurred on by the successful takeoff of Malaysia’s first SPAC, Hibiscus.