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Jakarta Post

IDX to allow SPACs to raise funds for start-ups

  • The Jakarta Post

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Jakarta   /   Mon, March 8 2021   /  01:00 am
IDX logo in front of a giant screen that displays information of the movement of stock prices at Indonesia Stock Exchange (IDX) in Jakarta, on March 13, 2020.(JP/Seto Wardhana)

The Indonesia Stock Exchange (IDX) plans to win over local tech unicorn listings by relaxing its rules this year after it was reported that three such companies were considering listing abroad. IDX development director Hasan Fawzi said the bourse would pass regulations by July that would allow companies to go public using special purpose acquisition companies (SPAC) and to issue dual-class shares, both of which have been hot topics among tech start-ups worldwide. “The nature of these new types of economies is different from traditional companies, so we need to anticipate their interest in going public,” he told The Jakarta Post on Wednesday, March 3, referring to tech start-ups such as fintechs and e-commerce platforms. A SPAC is a shell company that raises money through an initial public offering (IPO) for the sole purpose of acquiring another firm. Because SPACs ha...