16th April 2013
Blank cheque IPOs bring hope, caution to M’sia
KUALA LUMPUR: Malaysia's bull market is seeing a type of initial public offering (IPO), still fairly new to Asia, that takes a special kind of company public: one with no profits, revenues or assets.
CLIQ Energy Bhd last week became the second such firm, known as a special purpose acquisition company (SPAC), to list in Kuala Lumpur, with three more preparing for IPOs.
The spurt comes after Malaysian equities rose for four straight years, including a banner year for IPOs in 2012, and as investors anticipate a jump in mergers and acquisitions in South-East Asia.
But SPACs have historically been high-risk, high-reward investments.
