BOCHK seizes Special Purpose Acquisition Company (SPAC) business opportunities by collaborating with BOCPT to launch new escrow account service
Bank of China (Hong Kong) together with its subsidiary, BOCI-Prudential Trustee Limited has announced the launch of the Special Purpose Acquisition Company escrow account service to provide comprehensive support for companies with different listing needs.
SPAC listing helps shorten listing cycle and reduce costs, offering an alternative to traditional IPO for high-quality emerging and innovative companies. In light of the development of SPACs in the IPO markets, BOCHK, as a main receiving bank with extensive experience in many major IPOs, is partnering with BOCPT to launch this new escrow account service to actively promote this new type of fund-raising mechanism. BOCHK is the escrow account bank and BOCPT is acting as an escrow agent that complies with the requirements of the “Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited” (the “Listing Rules”). The new service is tailored to meet the escrow requirements for gross proceeds raised by SPACs during initial offerings under the Listing Rules, along with references to similar experiences in other markets, so as to ensure that the SPACs will follow the listing requirements while at the same time delivering the highest commercial value to the market.
Jimmy Sun, General Manager of Institutional Business Department of BOCHK, said, “Hong Kong's primary market is becoming more diverse and vibrant following the regulatory approval of SPAC listing. With its well-established IPO Receiving Bank Services, BOCHK has been assisting many companies or institutions to complete their IPOs in Hong Kong. As an alternative fund-raising channel, SPAC activity is expected to pick up again as the IPO market regains momentum. While we are actively expanding our IPO business, we believe that the new service will meet corporate customers’ fund raising needs, which will in turn promote the development of the SPAC market, enhance the overall competitiveness of Hong Kong's IPO market in Asia, and reinforce its status as an international financial centre.”
Andrew Law, Chief Executive Officer of BOCPT, said, “Capital raised from SPAC listing is strictly regulated. For BOCPT, SPAC escrow account service is a new market-led service in addition to providing traditional trustee service for unit trusts and mutual funds authorised by the Securities and Futures Commission. Since the introduction of the new SPAC listing regime by the Hong Kong Stock Exchange on 1 January 2022, 13 companies have applied for SPAC listing as of 30 June 2022. HK Acquisition Corporation, a SPAC listed on 15 August 2022, has entrusted BOCPT to serve as the escrow agent of its escrow account. BOCPT is committed to providing escrow services to SPAC customers in a prudent and professional manner and will strive to constantly expand the diversity and coverage of BOCHK’s corporate banking services.”