The Race to the Bottom
Morrison & Foerster partner and global chair of the firm’s private equity group Marcia Ellis was quoted in a recent article “Hong Kong to Join SPAC Frenzy” published by University of Denver student-faculty law blog The Race to the Bottom.
With several tycoons setting up and working on SPACs, sponsors may be required to have a successful track record of money management to pursue SPACs in the Asian market. “Hong Kong and Singapore undertake a qualitative review of whether a candidate is suitable to be listed as they focus on shareholder protection,” Marcia said. She believed that “if there are too many safeguards in place, that decreases the advantages of a listing compared to a traditional IPO and that will dampen the appetite of sponsors and SPAC targets.”
Read the full article.