Japan plans to allow SPAC registrations

Japan could allow SPAC listings in its markets as part of its growth strategy as early as next year.

Japanese regulators are would have consider regulatory changes to allow SPACs (Special Purpose Acquisition Companies) to register in the country.

The FSA (Financial Services Agency), METI (Ministry of Economy, Trade and Industry) and TSE (Tokyo Stock Exchange) plan to start discussions this summer.

The Japanese cabinet plans to include the issue in its strategic growth plan in June. PSPC registrations could become possible in the country as early as next year.

Amid the growth of PSPCs as a listing and fundraising vehicle, particularly in the United States, a number of other APAC jurisdictions have also considered allowing such listings in their markets, most notably Singapore, Hong Kong and Indonesia.

South Korea and Malaysia are currently the only Asian countries that already allow PSPC registrations.

SPACs, also known as “blank check companies”, are companies formed strictly to raise capital through an IPO for the purpose of acquiring an existing company.

They are considered an easy option to go public and raise funds, allowing companies to bypass lengthy IPO and due diligence procedures.

Several jurisdictions, including the United States and the United Kingdom, are seeking to strengthen guarantees for PSPC investors, while still encouraging more registrations.

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