The Securities and Exchange Commission of Pakistan (SECP) has amended the Public Offering Regulations, 2017 to introduce a regulatory framework for Special Purpose Acquisition Companies (SPAC). The introduction of SPAC in Pakistan’s market is expected to boost up activities in the primary market, encourage new listings and help companies to tap capital for large scale merger/acquisition transactions, said a press release issued. It would also enable investors/public to co-invest with sophisticated, highly experienced managers and benefit from the appreciation in the share value of acquired units. A SPAC is a company with no commercial operations that are formed strictly to raise capital through an initial public offering (IPO) for the purpose of merger/acquisition transactions. The concept of SPAC prevails in many developed countries like the USA, Canada, and Malaysia. Under the proposed regulatory framework, SPAC shall be a public limited company having a paid-up capital of not less than PKR 10 million. The SPACs promoters/sponsors, directors and CEO shall meet the fit and proper criteria. To safeguard the interests of shareholders, SPAC is required to keep 90pc of the funds raised through IPO in an escrow account managed by the custodian.