The first blank-check listings are about to kick off in Singapore, as Temasek Holdings Pte. and Tikehau Capital SCA-backed special purpose acquisition companies launch their IPOs.
Temasek, the Singapore government-owned investment authority, is backing Vertex Technology Acquisition Corporation Ltd.’s (VTAC) IPO, which may raise at least S$170 million ($125 million) by Jan. 21, according to Bloomberg.
Pegasus Asia, sponsored by Tikehau, could raise up to S$150 million (S$110 million) by Jan. 25.
The two IPOs will pave the way for a SPAC-driven rise in transactions to benefit Singapore’s poor IPO activity in 2021. The country saw only eight IPOs last year, with a total value of about $1 billion.
In addition to allowing SPACs to list on the SGX, the Singaporean government introduced a new funding program worth $1.5 billion in December to assist high-growth firms raising money in the country’s public equity market. This was also partly driven by the country’s stiff competition with Hong Kong.
Into the details of Singapore’s first SPAC IPOs
According to the company’s preliminary prospectus, VTAC’s primary focus areas include artificial intelligence, cybersecurity, enterprise solutions, consumer internet and technologies, financial technologies, autonomous driving and new energy vehicles, biomedical technologies, and digital healthcare.
VTAC is currently selling 34 million units at US$3.7 (S$5) each. If the greenshoe option is fully utilized, the amount may reach as high as US$134 million (S$182) million. The company will take orders until January 13 and allocate them by January 14.
In addition, VTAC has obtained 13 cornerstone investors for a total of 22.2 million cornerstone units, which totals $111 million in cash. Vertex Venture Holdings has also offered $30 million.
Pegasus Asia, meanwhile, is selling 25.6 million units at US$3.7 (S$5) each, according to the prospectus. The company can raise an additional US$14.75 million (S$20 million) through a greenshoe option. Pegasus Asia will take orders until January 12.
The SPAC’s primary focus will be on consumer technology, fintech, real estate technology, health technology, and other areas in Asia. Tikehau and Financiere Agache have also stated that they would invest up to S$40 million in a private placement following the completion of the transaction.
The acquisition period for both Pegasus and VTAC is 24 months, subject to a 12-month extension.