Analysis

Israel forms rules to allow for SPACs

, Israel Hayom

Israel has established rules to open up the Tel Aviv stock market for special purpose acquisition companies (SPACs), aiming to join in the boom. 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.

Rules 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."

The aim is to give the booming tech sector of the country access to public markets while safeguarding investors.

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