SPAC Serendiptiy Capital Files With SEC to Pull Plug on $250M IPO

Instead of launching its initial public offering (IPO) on Monday (Feb. 28), special purpose acquisition company (SPAC) Serendipity Capital Acquisition pulled the plug and filed a Request to Withdraw Registration Statement with the Security and Exchange Commission (SEC).

The blank check company formed by Serendipity Capital Holdings filed an S-1 with the (SEC) on May 7, 2021, and planned to target finance-related startups focused on the Asia-Pacific (APAC) region. It had intended to raise $250 million by offering 25 million units at $10, with each unit containing one share of common stock and one-third of a warrant, exercisable at $11.50.

See also: Traditional IPOs Announcements Gain Ground in 2022, While SPAC Deals Sputter

Headquartered in Singapore and launched in January 2020 by former Credit Suisse banker Robert Jesudason, CEO; Anton Jerga, CFO and COO; and Sean Harpur, Serendipity Capital is a “permanent capital vehicle that invests in the financial services industry specializing in technology and climate-focused businesses,” according to the SEC filing. The company also has offices in Cape Town, Hong Kong, and Sydney.

Serendipity Capital’s founders have been working together for more than eight years. Collectively across their careers, they have executed some $80 billion in transactions in the FinTech and financial services space. The company has an estimated valuation of $300 million, according to Bloomberg Canada.

Read more: Wall Street Jitters Over Market Volatility Put IPOs on Ice

Jesudason owns 50% of Serendipity Capital, with 25% held by the two other co-founders, as well as the board and senior advisers. External shareholders own the remaining 25%. The company generated a net return of 29.3 as of June 2021.

The IPO market is down this year compared to last. As of early last month, 13 companies raised $2.1 billion in U.S. IPOs. During the same frame last year, startups raised close to $20 billion, PYMNTS reported.

SPACs aren’t doing much better, having raised just over $6 billion as of early last month. In early February 2021, SPACs raised $26 billion.