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The trend of Southeast Asian companies going public through SPACs remains unabated, the U.S is further tightening the regulations for SPAC listings.

At the beginning of 2024, the U.S. Securities and Exchange Commission (SEC) approved new rules and amendments aimed at strengthening information disclosure and investor protection in initial public offerings (IPOs). The vote resulted in a 3-2 decision in favor of the regulations. These rules specifically targeted SPAC IPOs (Special Purpose Acquisition Companies) and the subsequent business combinations between SPACs and private operating companies, also known as de-SPAC transactions. Due to the recent overheating of the SPAC market, the SEC found it necessary to enhance its oversight of SPACs, challenging the previous exuberance surrounding this market. During the peak of the SPAC frenzy, start-up companies were able to pursue ambitious goals with minimal legal consequences, as they were primarily future-oriented objectives.

Further Reading: <HKET>


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