SPAC IPOs in Singapore: Why Companies Are Choosing NASDAQ

This post was originally posted on Planner Bee.

More Singaporean companies are going public on NASDAQ by merging with Special Purpose Acquisition Companies (SPACs). This trend has sparked interest and raised an important question—what exactly are SPAC IPOs, and why are they becoming a popular option for Singaporean businesses?

What is a SPAC IPO?

Traditionally, companies seeking to raise capital and gain public visibility would undergo an Initial Public Offering (IPO). This process involves selling shares to the public and listing on a stock exchange. However, the IPO process can be time-consuming, costly, and complex.

SPACs offer an alternative. A SPAC is a “blank-cheque” company created to raise capital through an IPO with the sole purpose of acquiring an existing business. Once it merges with a private company, that company becomes publicly traded—without having to go through a traditional IPO.

How do SPAC IPOs differ from traditional IPOs?

• Speed: A SPAC merger can take just a few months, whereas traditional IPOs can take more than a year.
• Cost: SPACs often involve lower expenses, as they reduce underwriting and marketing costs.
• Certainty: SPAC mergers provide greater valuation certainty since the price is negotiated upfront between the SPAC and the target company.

Advantages and risks of SPAC IPOs

Advantages

1. Easier access to capital: SPACs provide companies with a quicker way to raise significant funding, often in the hundreds of millions. This funding can help businesses grow, expand into new markets, or invest in technology and talent.
2. Experienced leadership: SPAC sponsors are usually seasoned investors or business leaders. By working with them, companies gain expert guidance, strategic insights, and industry connections that can boost their chances of success.
3. More flexible deal terms: Unlike traditional IPOs, which follow a strict process, SPAC mergers allow companies to negotiate key terms. This flexibility can lead to better valuations, more favourable timelines, and smoother transitions.
4. Quicker path to going public: A SPAC merger can take just a few months, whereas a traditional IPO often takes a year or more. For companies looking to go public quickly, this speed is a major advantage.
5. Greater valuation of certainty: With a SPAC, the company and the SPAC agree on a valuation in advance. This reduces uncertainty compared to a traditional IPO, where the final price is influenced by market conditions.

Risks

1. Stock market volatility: Once the merger is complete, the newly public company’s stock price can fluctuate significantly. Investors react to financial performance, and missing expectations can impact both reputation and finances.
2. Increased regulatory scrutiny: SPACs are facing closer scrutiny from regulators like the U.S. Securities and Exchange Commission (SEC). Stricter compliance rules and more detailed financial disclosures can slow down deals and increase legal costs.
3. High expectations for performance: Companies going public through a SPAC often make bold growth projections. Once listed, they’re expected to deliver quickly. Falling short of expectations can result in stock declines, negative press, and investor dissatisfaction.
4. Limited track record: Many SPAC-backed companies are still in their early growth stages. With little operating history, they may lack strong earnings or proven business models, making their long-term success harder to predict.
5. Potential misalignment with sponsors: SPAC sponsors may be more focused on completing a deal than ensuring the best long-term fit. This can lead to partnerships that don’t fully support the company’s future goals.

Why do Singaporean companies choose SPAC IPOs?

Access to global investors, especially in the U.S.

Listing on NASDAQ through a SPAC helps Singaporean companies attract investors worldwide. It increases their global presence and strengthens their credibility, particularly in the U.S. market.

A faster and more cost-effective route to going public

SPAC mergers are often quicker and cheaper than traditional IPOs. This allows fast-growing companies to secure funding and start trading sooner, without the delays and high costs of a conventional listing.

Singaporean companies that went public on NASDAQ via SPAC IPOs

Several Singaporean companies have successfully listed on NASDAQ through SPAC mergers. Here are some notable examples:

1. Grab Holdings Limited

Grab, Southeast Asia’s leading super app for ride-hailing, food delivery, and digital payments, went public on NASDAQ in December 2021. It merged with Altimeter Growth Corp., a SPAC, in one of the largest SPAC mergers globally, valuing the company at around $40 billion.

However, on its first trading day, Grab’s stock price fell by more than 20%, showing how unpredictable the market can be.

2. GCL Global Holdings

In February 2025, GCL Global Holdings, the parent company of Titan Digital Media—founded by Singaporean YouTuber Jianhao Tan—listed on NASDAQ through a merger with RF Acquisition Corp., a SPAC. The deal valued GCL at approximately S$1.6 billion.

3. Ohmyhome Ltd (OMH)

Singapore-based property technology company Ohmyhome Ltd also chose a SPAC merger for its NASDAQ listing. The company aimed to leverage the U.S. public markets to support its expansion and enhance its technology offerings.

Read more: Beginners’ Guide to Sustainable Investing in Singapore

Challenges companies face after going public

SPAC mergers offer many advantages, but companies also encounter challenges once they go public:

1. High market expectations: Public companies are under constant scrutiny. Investors expect strong growth and profits. Falling short can hurt both reputation and stock value.
2. Stricter rules and regulations: Listing in the U.S. comes with strict reporting and compliance requirements. Meeting these standards takes time and can be costly, especially for companies that aren’t fully prepared.
3. Unpredictable stock performance: Stock prices can be highly volatile, especially in the early days. Sharp fluctuations affect market confidence, as seen with Grab’s first-day drop.

Conclusion

More Singaporean companies are turning to NASDAQ and SPAC IPOs as a quicker, more straightforward way to go public. This approach offers access to global investors and can accelerate growth.

However, while the benefits are clear, companies must also consider the risks. The SPAC process can be complex, requiring careful planning and thorough research. As the market continues to evolve, businesses should take a strategic approach to ensure long-term success.

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