Singapore’s first SPACs set to list in city-state this month -sources

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SINGAPORE : Two Singapore special-purpose acquisition firms (SPACs) have opened their books for preliminary public choices (IPOs) and are set to list in the city-state later this month, two individuals with data of the matter stated on Friday.

The IPOs, by Vertex Technology Acquisition Corp (VTAC) and Pegasus Asia, would mark the first SPAC listings on a serious Asian bourse, and the first in the area because the frenzy for such blank-check corporations began in the United States in 2020. Demand for U.S. SPACs has since fizzled out.

SPACs are shell firms that list on inventory exchanges after which merge with an current firm to take that agency public, aiming to supply shorter itemizing timeframes and robust valuations.

The listings come after Singapore Exchange rolled out a relaxed regulatory framework final 12 months for such floats, aiming to increase a sagging marketplace for IPOs. Fund-raising on the Singapore bourse slid to a six-year low of US$565 million in 2021 from simply eight listings, Refinitiv knowledge confirmed.

Last month, Hong Kong’s inventory change operator additionally stated SPACs may list in Hong Kong from Jan. 1 after it tweaked its itemizing regime.

In the brand new listings, VTAC is backed by Singapore state investor Temasek Holdings’ Vertex Venture Holdings.

Focused on cyber safety, fintech and different sectors, VTAC stated on Thursday it aimed to elevate no less than about SUS$170 million (US$125 million) by promoting items at SUS$5 apiece, with out specifying a date.

VTAC is trying to list on Jan. 21, topic to regulatory approvals, one of many sources instructed Reuters.

The supply of 34 million items includes 22 million items being supplied to 13 cornerstone buyers.

The second SPAC, Pegasus Asia, backed by European asset supervisor Tikehau Capital, that additionally filed its prospectus on Thursday, is set to list in Singapore on Jan. 25, the second supply stated.

Pegasus Asia is trying to elevate no less than SUS$150 million and make investments in technology-enabled sectors together with the fintech sector. The SPAC’s sponsors embody Financiere Agache, the holding firm of LVMH luxurious items chief Bernard Arnault.

The sources declined to be recognized as they weren’t authorised to communicate to media.

There was no instant response to a question despatched to Tikehau exterior European workplace hours. Vertex Venture declined to remark.

Credit Suisse, DBS and Morgan Stanley are joint international coordinators and joint underwriters for VTAC’s subject, whereas Citigroup and UBS are main Pegasus’ providing.

(US$1 = 1.3597 Singapore {dollars})

(Reporting by Anshuman Daga in Singapore; Additional reporting by Tejaswi Marthi in Bengaluru; Editing by Himani Sarkar and Kenneth Maxwell)

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