Egypt’s first SPAC is nearly here: Impact investor Catalyst Partners will set up the country’s first SPAC, dubbed Catalyst Partners Middle East (CPME), after receiving the greenlight from the Financial Regulatory Authority (FRA), according to a statement. The SPAC will have a month to apply to list on the EGX as per FRA regulations.

A long time coming: The FRA greenlit a proposal to allow the establishment of blank-check firms back in 2021.

Hot on the heels of fresh SPAC rules: The approval comes a couple of months after the FRA updatedits rules governing the listing and delisting of the acquisition vehicles on the Egyptian bourse. Under the regulations, SPACs must apply to list on the EGX within one month of obtaining their license from the FRA, or it will be considered invalid. They need a minimum issued and paid-up capital of EGP 10 mn which must be increased to EGP 100 mn within three months of listing on the EGX.

Regulation updates earlier this month opened the door for SPACs to hold temporary accounts for the purpose of conducting acquisitions.

What can we expect from CPME? The SPAC will reportedly target fintech firms and NBFS players, with plans to acquire three firms upon receiving the license, according to unconfirmed reports out in July when Catalyst Partners applied for the SPAC license.

What’s a SPAC again? A special purpose acquisition company is a type of shell company used by investors to acquire firms. SPACs raise money from the public in an IPO and then use the proceeds to merge with or acquire an appropriate company. Check out our explainer for more on how SPACs work.

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