Lack of investor education on SPACs remains a major obstacle for the new ‘listing’ route to take off in a big way in the UAE, Arabin Business reports, citing market experts.
The tepid progress of listing through the SPAC route remained a concern amidst the recent boom in initial public offerings in the country, they said.
The rush for IPO listings in UAE saw the Securities and Commodities Authority approve in January a regulatory framework for SPACs. But the new listing route has not taken off in the same way as traditional IPOs, market experts at a panel discussion organized by the Institute of Chartered Accountants in England and Wales (ICAEW) held in Dubai pointed out.
“While the new ‘backdoor’ listing method is expected to attract further foreign investment, low investor understanding about the vehicle is limiting uptake,” was the overall view of the panelists. Read more.
