Choong has also kept her target price unchanged at $10.70 as she views the new rules as positive for SGX on the whole.
“SGX’s SPAC framework places it ahead of its regional rival, Hong Kong Exchange (HKEX), which is also reported to be in the midst of deliberating the listing of these vehicles in a bid to boost its IPO pipeline (and trading volumes) and share of the associated fees,” writes Choong in a Sept 3 report.
For the time being, US bourses NASDAQ and the New York Stock Exchange (NYSE) have been getting the lion’s share of both, she notes.
In her report, Choong has identified Novo Tellus and Temasek-backed Vertex Holdings as prospective SPAC sponsors for listings in Singapore.
For more stories about where the money flows, click here for our Capital section
While incremental listing fees from the SPACs will not likely be material, Choong sees the initiative as an overall positive.
"While incremental listing fees from SPACs will not likely be material, we believe that this initiative will add to SGX’s product completeness and long-term competitiveness over regional peers. The key question is then whether there is a sufficient pipeline of both sponsors and target companies available in Southeast Asia," she says.
As at 9.42am, shares in SGX are trading 13 cents lower or 1.27% down at $10.10, or 9.18 times FY2021 P/B and a dividend yield of 3.17%.
