Hong Kong Seen Struggling to Lure SPACs With Strict Rulebook
- SPAC deals could boost Hong Kong IPOs by 8%, BI estimates
- Hong Kong is latecomer to SPACs as dealmaking frenzy has ebbed
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Hong Kong could have a hard time attracting blank check companies after it proposed a high threshold to list in the city.
In a consultation paper released on Friday, Hong Kong Exchanges & Clearing Ltd. proposed that special purpose acquisition companies would need to raise at least HK$1 billion ($128 million) when listing and that retail investors would be barred from participating. It also set an eligibility test for SPAC promoters, including having managed at least HK$8 billion for three years or possessing senior management experience at major listed companies.