Why Southeast Asian tech companies are choosing SPACs for US listings

The SPAC structure has emerged as a compelling alternative to traditional IPOs for technology companies in Southeast Asia seeking access to US capital markets. Unlike conventional listings, SPACs offer pricing certainty, compressed timelines, and the ability to present forward-looking projections that resonate with growth-stage companies operating in rapidly expanding markets.

For ASEAN-based companies, the SPAC path addresses several pain points inherent in cross-border IPOs. The traditional IPO roadshow model requires extensive investor education about unfamiliar markets, regulatory environments, and business models that may not have direct US comparables. A SPAC merger allows target companies to work directly with a sponsor who has already built the institutional investor base and understands the regulatory landscape.

Structural Advantages

SPACs provide valuation certainty at a stage when traditional IPO pricing remains uncertain. Target companies negotiate enterprise value directly with the sponsor, eliminating the volatility of a book-building process. For Southeast Asian companies unfamiliar with US capital markets dynamics, this certainty is particularly valuable.

Market Timing Flexibility

The SPAC structure decouples the capital raise from the target identification, giving sponsors the ability to wait for optimal market conditions before executing a business combination. This flexibility has proven advantageous in the current environment, where Southeast Asian technology companies are reaching scale at varying rates across different verticals and geographies.

Regulatory Considerations

While SEC scrutiny of SPACs has increased, well-structured transactions with credible sponsors continue to close successfully. Companies that prioritize transparent disclosure, robust financial controls, and experienced advisory teams navigate the regulatory environment without material delays. The key is preparation: companies that begin SEC-readiness work early in the de-SPAC process consistently outperform those that treat compliance as a last-mile exercise.