Israel has established rules to open up the Tel Aviv stock market for SPACs, aiming to join in a boom in these investment vehicles which have raised billions of dollars in the United States, Reuters reports.
Anat Guetta, head of the Israel Securities Authority, said the requirements in Israel aim to protect investors without dampening their appetite for SPACs as an alternative fundraising route for local companies.
They include setting a two-year deadline for the SPAC to find a company to buy, so that investors who put money into the vehicle are not left stranded.
The rules also include a 70% minimum participation by institutional investors, and a requirement that SPAC sponsors invest at least 40 million shekels ($12 million) themselves so they have “skin in the game.” Read more.
