Green light for rating and spac trading on the Swiss stock exchange |Lake

The actions of acquisition companies with a specific vocation (Special Purpose Acquisition Company or Spac), fictitious companies created for the sole purpose of acquiring an unlisted firm, may be listed and negotiated on the Swiss Stock Exchange from December 6.

The Helvetic market operator has received competent authorities all the authorizations necessary for this reason.

The rating of SPACs, subject to a new standard, takes into account the specific characteristics of this type of investment vehicle, written on Tuesday six, the company which operates the Swiss stock market and also ensures the operation of the Swiss financial infrastructure.The new rules ensure in parallel a level of protection "appropriate" of investors.

As part of its activity, a SPAC first lifts capital through an initial public offer (IPO), recalls six.The SPAC then invests the funds then obtained in the acquisition of a target company, the latter being listed on the stock market via the effective repurchase by the spac, an operation called "de-spacing".

Companies wishing a rating as a SPAC will be subject to the same quotation requirements as other companies listed on the Swiss Stock Exchange, with adaptations to their specific characteristics.The rules for disclosure for SPACs within the framework of IPO and the moment at which "de-spacing" is intended to provide investors with the relevant information that will allow them to make decisions by full knowledge of the facts.

Only public limited companies under Swiss law, the objective of which is the direct or indirect purchase of another company can be listed as a SPAC.Their lifespan is limited to a maximum of three years, specifies six.The issuing products collected as part of an entry to the stock exchange procedure, initial public offering (IPO), must be deposited on a trustee account of a bank.

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SPACs will also have to grant all shareholders a general right of restitution applied to all titles acquired within the framework of the IPO.Board of Directors, Management, Founders and Sponsors of the SPACs must conclude binding lock-up conventions, continues six.The childcare period amounts to at least six months.

During the IPO, SPACs will be able to offer investors participations in a convertible obligation in place of shares.Two quotation requirements, i.e. art.11 and 12 RC will not apply to the Spacs, however: their transmitter must not comply with the requirement for rating relating to the minimum existence duration of a transmitter ("record track requirement"), or havepresented the corresponding annual accounts for the three complete years preceding the quotation request.

SPACs will have to disclose additional quantitative and qualitative information in the prospectus drawn up in relation to the IPO, in accordance with the Financial Services Act (LSFIN).Quantitative information refers in particular to the indications relating to the dilution effect, for example due to warrants, as well as to the costs that a public shareholder must cover in the event of restitution of actions.

In addition, in addition to the members of the board of directors and the management, the sponsors and shareholders-founders of the SPAC are also subject to the declaration of declaration within the meaning of the Swiss stock exchange rules.They must advertise their transactions accordingly.After execution of the "de-spacing", this obligation applies up to a month after the expiration of the lock-up agreement.

This article was published automatically.Sources: ATS / AWP