20/01/22

SINGAPORE: SPAC Debut Results in Investor Bonanza.

As published on finews.asia, Thursday 20 January, 2022.

Singapore debuted its first special purpose acquisition company yesterday, luring masses of local and international investors seeking to capitalize on blank-cheque opportunities.

Vertex Technology Acquisition Corporation Ltd. (VTAC) raised S$170 million ($126 million), according to a statement, in an IPO that was subscribed 36 times and nine time by retail and international investors, respectively.

Backed by state investor Temasek’s Vertex Venture, VTAC is targeting companies within six investment themes, including cybersecurity and artificial intelligence, and a focus on Southeast Asia, India, China or Israel.

VTAC can still opt to increase the final size of its issuance due to over-allotment and trading begins later today.

VTAC becomes Singapore’s first listed SPAC and will have 24 months to engage in an acquisition, subject to an extension of up to 12 months.

There are two more income SPACs in the city-state’s pipeline including Tikehau Capital-backed Pegasus Asia and Novo Tellus Alpha Acquisition.

Rival hub Hong Kong is also nearing its own SPAC debut following a recent application by a company backed by China Merchants Bank.