On Apr. 8, SAU CMA proposed draft investment product via SPACs.
SAU CMA issued consultation regarding the availability of a new investment product in the parallel market, via the offering of Special Purpose acquisition companies (SPACs).
Draft SPACS Framework
Encourages private sector companies to list on the parallel market through SPACs.
SPACs would be formed as joint stock companies in accordance with Companies Law.
The proposed regulatory framework defines the role and obligations of the sponsor in the SPACs, including restrictions on disposing of its shares during specified periods.
Sponsor ownership must not fall below 5% of SPAC's capital, must not exceed 20%.
Regulates terms and requirements for registering and offering shares of SPACs.
Allows shareholders to request the redemption of their redeemable shares in exchange for a cash amount from the escrow account, proportional to their ownership.
If draft is approved, SPACs will be offered on the Parallel Market and listed on Nomu.
Requires SPACs to complete acquisition or merger transaction with the target company within a period not exceeding 24 months from the date of its listing on Parallel Market.
Consultation
Comments on the draft framework are due within 30 days, on May 8, 2025.
