Regulations governing public offerings modified the SPAC framework

Regulations governing public offerings modified the SPAC framework

Regulations governing public offerings have been modified to accommodate the SPAC framework.
The Securities and Exchange Commission of Pakistan (SECP) announced the amendments to the Public Offering Regulations 2017 on Tuesday, establishing a regulatory framework for Special Purpose Acquisition Companies (SPACs) (SPAC).

A SPAC is a business that has no commercial operations and is founded only to raise cash through an initial public offering (IPO) for mergers and acquisitions. SPAC is a notion that is prevalent in several developed countries, including the United States, Canada, and Malaysia.

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According to a press statement issued Tuesday, SPAC’s entry into Pakistan’s market is intended to enhance the primary market, attract new listings, and assist corporations in raising cash for significant mergers and acquisitions. Regulations governing public offerings have been modified to accommodate the SPAC framework.

Additionally, it would enable investors/the public to co-invest with smart, highly experienced managers and benefit from appreciating purchased units’ share value. Regulations governing public offerings have been modified to accommodate the SPAC framework.

A special purpose acquisition company (SPAC) is a corporation that has no commercial operations and is established only to raise capital through an initial public offering (IPO) for mergers and acquisitions. There are several developed countries where SPAC is widely accepted. These include the United States, Canada, and Malaysia, among others. Regulations governing public offerings have been modified to accommodate the SPAC framework.

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A SPAC shall be a public limited company with a minimum paid-up capital of Rs10 million under the proposed regulatory framework. The proposed regulatory framework requires that SPACs be public limited companies having a minimum paid-up capital of Rs10 million to qualify as SPACs. Regulations governing public offerings have been modified to accommodate the SPAC framework.

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