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Journal : PADJADJARAN Jurnal Ilmu Hukum (Journal of Law)

Decoding the Special Purpose Acquisition Companies: A New Frontier in Tech Start-Up Financing Tan, David; Disemadi, Hari Sutra; Sudirman, Lu
PADJADJARAN JURNAL ILMU HUKUM (JOURNAL OF LAW) Vol 11, No 1 (2024): PADJADJARAN JURNAL ILMU HUKUM (JOURNAL OF LAW)
Publisher : Faculty of Law, Universitas Padjadjaran

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Abstract

The emergence of SPAC has democratized participation in the burgeoning equity market. Capital raised during a SPAC's Initial Public Offering (IPO) is typically held in escrow identifies a suitable acquisition or merger target. This study explores the concept of SPACs, their operational mechanisms, their appeal to tech startups, and their presence in Asia, with a specific focus on the Indonesian jurisdiction. The study also aims to identify the potential risks SPACs may pose to the equity market to inform more effective regulation. Employing normative legal research and prioritizing secondary data, the findings of this paper indicate that SPACs have evolved from a niche option to a significant facilitator for private enterprises seeking to enter public markets through an IPO. The study further reveals that, despite the risks associated with SPACs and their current unpreparedness for IPOs in Indonesia, lessons from foreign experiences could guide the development and implementation of domestic regulations. While SPACs have demonstrated their value and promise to become a significant market force, calls for swift regulatory action should balance the benefits of SPACs against the need for thoughtful regulation, presenting an opportunity to reconsider existing IPO regulations.DOI: https://doi.org/10.22304/pjih.v11n1.a5 
Co-Authors ., Jane Abao, Grace Angela Adristy, Baiq Shefania Agustianto Agustianto Agustianto, Agustianto Agustini, Shenti Ahmad, Faradina Alhakim, Abdurrakhman Amboro, F. Yudhi Priyo Amboro, Florianus Yudhi Priyo Antony, Antony Ayunda, Rahmi Bago, Ester Intensis Bayu Anggara, Sultan Celline, Celline Chairunnisa Chairunnisa Dhani, Ayen Sephia Disemadi, Hari Sutra Elza Syarief, Elza Eny, Eny Farahdina, Farahdina Febriyani, Emiliya Ferryanto, Justitia Fiorentine, Jasisca Fitri, Winda Girsang, Junimart Guswandi, Cynthia Putri Haris, Muhammad Tan Abdul Rahman Haryati, Lily Henry Soelistyo Budi, Henry Soelistyo Heru Susetyo Hutahuruk, Rufinus Hutauruk, Rufinus Hotmaulana Insti, Putri Deviana Irawati, Jovita Iswara, Vizta Dana Jaya, Febri Jerryen, Jerryen Jonkarlo, Edson Jonker Sihombing Julvina, Julvina Jur. M. Udin Silalahi Karim, Justin Joy Lee, Michelle Lendrawati Lendrawati, Lendrawati Lie, Cindy Maharani Siregar, Ghea Regita Malau, Hotmaulina Manurung, Kevin John Paul Manurung, Shenti Agustini Mrs. Feronica Naga Wijaya, Hendry Nurfitri, Nisa Nurlaily NURLAILY, NURLAILY Oktavia, Ariani Park, Jihyun Prastiyo, La Ode Agung Priyo Amboro, Florianus Yudhi Rina Shahriyani Shahrullah Ritonga, Moehammad Mahastar Romadona, Hanifah Ghafila Sahputra, Rendi Santoso, Deddy saputra tanwir, yopta eka Saputra, Dedi Eka Sari, Rayon Seroja, Triana Dewi Seroja, Triana Dwi Setiawan, Marthalia Siahaan, Hervyan Siburian, Hasoloan Silviani, Ninne Zahara Sirait, Regina Ulianna Siregar, Zulhirdan Situmeang, Ampuan Sohheng, Nipon Sulastri Sulastri Syrief, Elza Tan, David Tan, Winsherly Tobing, Dian Riama L Tobing, Joel Jordan Tony Tony Trisetyo, Muhammad Dhimas Wagiman, Wagiman Warianto, Wahyudi Windi Afdal, Windi Zulfi, Natasya Artameivia