SIX Allows Listing and Trading of SPACs

The SIX Swiss Exchange announced on Tuesday that it will allow the listing and trading of special purpose acquisition companies (SPACs) from December 6.

SPACs are shell companies listed on the stock exchanges with the only purpose of merging with an operational company to ease the latter’s public listing. The company raises money through a traditional initial public offering (IPO) and then utilizes the proceeds for the targeted acquisition.

Commenting on the move, Christian Reuss, the Head of SIX, said: “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.”

Additionally, the Swiss Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term has published a set of regulatory specifications for the SPAC listings and assured that it is upholding an appropriate degree of investor protection.

SPACs Are in Demand

Moreover, the official announcement has detailed that only stock corporations under Swiss law can be listed as SPAC, and they will have a maximum of three years for a merger with another operational company. In addition, SPACs can offer convertible bonds instead of shares to the investors.

The Swiss exchange brought forward SPACs when demand for the backdoor public listing of companies is soaring. These vehicles became very popular in the United States as many established companies have preferred the SPAC merger to go public.

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