Regulatory Alerts2021-09-21
Added · Updated
Amendments to Public Offering Regulations, 2017 – Special Purpose Acquisition Company
The Securities and Exchange Commission of Pakistan introduces Chapter VIA to the Public Offering Regulations, 2017, establishing a regulatory framework for Special Purpose Acquisition Companies (SPACs). SPACs must maintain a minimum paid-up capital of ten million rupees, raise at least Rs. 200 million, and place 90% of proceeds in an escrow account for a qualifying merger or acquisition within 36 months. The rules mandate that the target company's fair market value be at least 80% of escrow funds, require shareholder approval via special resolution, and provide dissenting investors with a refund of 90% of their initial investment if they vote against the transaction.
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