A New Offshore Option for SPACs - SPAC to the (TISE) future...?

A special purpose acquisition company ("SPAC") is a public company which raises funds via its listing, typically in order to acquire an existing business. They are by no means new, but as is well documented, have been enjoying a huge resurgence. In the US, SPAC Insider reported $36.2 billion raised in gross proceeds during 2020 (compared to $13.6 billion in 2019 and $10.8 in 2018).

However, when it comes to Channel Islands listings, notwithstanding the introduction of new rules by The International Stock Exchange (“TISE”) back in 2017 designed to facilitate the listing of SPACs, there has not been a huge amount of activity. TISE is very much the exchange of choice for technical listings and was ahead of the game in introducing the relevant SPAC framework, with stock exchanges around the world catching up and looking to improve their SPAC appeal (for example, the recently reported rule change at Nasdaq Stockholm to bring it in line with the US and Nasdaq Nordic introducing a new framework, not to mention Rishi Sunak trying to encourage SPAC business into the City in the recent budget).

Notwithstanding the lack of activity to date, anecdotally at least, SPAC interest in TISE seems to be on the rise. We are certainly seeing an increase in the number of enquiries. Add that to the number of deals and ongoing global coverage relating to SPACs, we thought it worth revisiting TISE in this context.

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Zoë HallamGroup Partner*T +44 (0)1481 748 920zoe.hallam@walkersglobal.com

Dilmun LeachGroup Partner*T +44 (0) 1534 700 783dilmun.leach@walkersglobal.com
Julia KeppeSenior CounselT +44 (0) 1534 700 728julia.keppe@walkersglobal.com
Grace PickeringHead of Listings - Channel IslandsT +44 (0) 1534 700 714 grace.pickering@walkersglobal.com