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Malaysian securities regulator reviews SPAC framework, citing demand By Reuters

by Mike Robinson

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© Reuters.

KUALA LUMPUR. (Reuters) – The Malaysian Securities Commission is reviewing its SPAC framework. This review comes amid increasing demand. SPACs are cheaper than public initial public offerings and offer a faster way to get to the market.

The current SPAC framework will be reviewed to improve efficiency in light of the increasing demand for these vehicles by high-growth businesses, it stated at the start of the five-year capital markets masterplan.

SPACs can be described as shell companies that are listed on stock exchanges. They raise capital to merge with existing companies to make them public. These listings typically offer stronger valuations and shorter time frames than IPOs.

In separate news, Tengku Zafrul Abdul Aziz, the Finance Minister, stated that the government’s venture capital fund had also invested in Xendit in Indonesia, after an earlier investment in Carsome, a used car marketplace.

He stated that Xendit (a fintech unicorn) will be moving its financial hub to Malaysia. The investment amount was not disclosed.

The investment fund, Penjana Kapital, was set up https://www.reuters.com/article/malaysia-venture-capital-idUSL2N2N60ZZ under the ministry to put into operation the government’s matching fund-of-funds programme. A June press release revealed that the first fund closed at May 31st with 850 million ringgit (or $202.96 million).

($1 = 4.1880 ringgit)

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