Special purpose acquisition companies (SPACs) will be listed and traded on Switzerland's stock exchange SIX from December 6, according to a statement by the Swiss bourse released on Tuesday (Nov. 16).
A Special Purpose Acquisition Company (SPAC) is a shell company founded for the sole purpose of acquiring a non-listed target company. – thus taking this company public. The SPAC first raises capital through an initial public offering (IPO). The SPAC 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).
SPACs as financial vehicles have been in existence for decades, but only in the recent past gained widespread attention by market participants. This is why SIX has closely monitored these developments and the demand around SPACs for its market and – in response to a regulatory need - developed a new dedicated listing standard. 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. Regulatory disclosure requirements for SPACs at IPO as well as at the time of de-SPAC aim to provide investors with the relevant details for them to take informed investment decisions.
“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" Christian Reuss, Head SIX Swiss Exchange, stated.
VERAISON Capital has planned to launch the first SPAC in the Alpine country.
"It's positive for the Swiss financial center that FINMA, in cooperation with stock exchange operator SIX, is now enabling the listing of SPACs as a new alternative," Gregor Greber, co-founder of VERAISON Capital said.