Japan should consider whether to allow listings through SPACs, govt panel says

Ark Solutions

17/03/2021 08:49

TOKYO, March 17 (Reuters) - Japan should consider whether to
allow firms to list through a Special Purpose Acquisition
Company (SPAC) on exchanges, a government panel tasked with
drafting the country's growth strategy proposed on Wednesday.
    A SPAC is a "blank cheque" company that raises money through
an initial public offering (IPO) with the intention of merging
with another firm, allowing that business to list more quickly.
    While most SPACs so far have listed in the United States,
the idea of listing through a shell company has gained
increasing traction in Asia toward the end of last year
following rapid growth in the deals elsewhere.
    The move in Japan by the Growth Strategy Council, a
government panel, including private-sector members, suggests the
idea could make headway in the world's third-largest economy.
    "Japan has insufficient means of providing capital to
unlisted startups," the panel said in a statement, suggesting
the country should consider listings through a SPAC.
    There have been $2.67 billion worth of SPAC deals in Asia so
far in 2021, already more than $2.46 billion for last year, but
none of those have been in Japan, Dealogic data showed.
    Elsewhere, Hong Kong's government said earlier this month
that it was exploring whether to allow SPACs to list in the
Asian financial hub, while Britain is also seeking to modernise
its listing rules.  urn:newsml:reuters.com:*:nL2N2L009P urn:newsml:reuters.com:*:nL2N2L10D8
    
    

 (Reporting by Daniel Leussink and Yoshifumi Takemoto in Tokyo;
Additional reporting by Scott Murdoch in Hong Kong)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))