On Apr. 8, SAU Tad consulted on a new investment product.
SAU Tad issued Consultation Paper re a new investment product in the parallel market.
Key Provisions
Represented by the offering of Special Purpose Acquisition Companies (SPACs), which is expected to positively impact liquidity levels by increasing the number of listings.
Required sponsor from capital market entities to manage investments, operate funds.
Defined sponsor role in SPACs, restrictions on disposing of shares at specified periods.
Sponsor's ownership must not fall below 5% of SPAC's capital and do not exceed 20%.
Allow shareholders to request redemption of their redeemable shares in exchange for a cash amount from escrow account, proportional to their ownership in merger company.
Proposed to offer SPACs on Parallel Market and list it on Nomu as per rules on offer of securities and continuing obligations, as the other listed companies in capital market.
90% of SPAC's capital following offering is deposited into a dedicated escrow account.
Regulated the terms and requirements for registering and offering shares of SPACs on the Parallel Market, along with the ongoing obligations applicable to such companies.
Target company value is 80% of funds deposited in escrow account, shareholders of SPACs must hold no less than 30% of shares in company upon completing transaction.
Required SPACs to complete the acquisition or merger transaction with target company within 24 months maximum period from the date of its listing on the Parallel Market.
Allowed to extend period for additional 12 months at most, with assembly's approval.
Effectiveness
Comments must be provided via Istitlaa by end of consultation date, on May 8, 2025.
