Enter the SPACs: Three blank cheque listings ring in 2022

The Singapore bourse saw its first three SPAC listings in the first month of 2022.

Special purpose acquisition companies (SPACs) are a new addition to the Singapore Exchange (SGX) that was quickly adopted by the investor market, with three listings in the first month of the year.

Vertex Holdings, a wholly-owned subsidiary of state investor Temasek, was the first to launch a public offer for its Vertex Technology Acquisition Corporation (VTAC) on 18 January.

Its public offering of 0.6 million units priced at $5 per share was 36 times subscribed on the SGX. Its international placement of 11.2m units to Singapore institutional, foreign institutional, and investors outside the US was 8.8 times subscribed. Overall, it raised $200m from its IPO, representing 40m units.

Singapore’s first SPAC, VTAC aims to acquire a business with a core technology focus and highly differentiated products that would improve people’s lives by transforming businesses, markets, and economies.

Pegasus Asia, sponsored by Tikehau Capital (through its subsidiary Bellerophon Financial Sponsor 3 SAS) and Financiere Agache SA (through subsidiary Poseidon Asia Financial Sponsor SAS). Financiere Agache is owned by the family of French luxury fashion mogul Bernard Arnault. This makes it the first SGX-listed SPAC backed by international sponsors.

Its Singapore IPO of 600,000 units was 7.8 subscribed. Along with its international offer of 29 million units, Pegasus Asia raised approximately $23.4m.

Whilst Pegasus Asia also plans to acquire a company in technology-enabled sectors, it will focus on technology for the consumer, financial, property, insurance, healthcare, and digital sectors. The company should provide services in the Asia Pacific, though not exclusively.

The trading month closed with the IPO for private equity firm Novo Tellus’ SPAC, Novo Tellus Alpha Acquisition, on 27 January. Its offering of 500,000 units was 7.6 times subscribed, whilst its international placement of 9.5 million offering units was 3.1 times subscribed. It also sold 16m units to thirteen cornerstone investors. Overall, it raised $150m.

Novo Tellus Alpha Acquisition plans to acquire an industrial company within the $500m to $1b range with stable growth and profitability.