London's SPAC-friendly listing rules15 Sep 2023 12:23
London's SPAC-friendly listing rules explained:
Prior to the FCA's Listing Rules change, a major disincentive to SPACs listing in London was a Listing Rule requirement - LR 5.6.8 G - which meant that in most cases when a SPAC found a target business with which to merge or acquire (a "de-SPAC transaction"), it would be forced to accept a suspension of listing prior to updating the market with financial and other information about the new business of the listed entity.
The changes that the FCA introduced in August 2021 to allow a special category of "SPAC" shell company to de-SPAC without suffering a suspension in its listing, require the SPAC entity to satisfy a number of listing conditions (listed below), some of which (if not in their specifics) were also adopted by the Singapore and Hong Kong markets later in 2021 as they joined the race to attract SPAC listings and investment.
New conditions which DKE have likely adopted and passed with regulators.