Malaysian payments technology company Super Apps is set to go public in the United States via a special purpose acquisition company (SPAC) merger that values the firm at $1.1 billion.
The company said in a news release Wednesday (Oct. 19) it will merge with Technology and Telecommunication Acquisition Corporation and list on the Nasdaq as TETE Technologies.
“The proceeds from the business combination, combined with our leadership team’s significant FinTech industry experience, will allow Super Apps to accelerate growth in revenue through the expansion of its workforce, including sales and marketing headcount,” said Super Apps CEO Loo See Yuen in the release.
Meanwhile, Super Apps plans to purchase 60% of FinTech firm MobilityOne’s stake in OneShop Retail, according to the release.
SPACs bloomed in popularity in 2020 and 2021, but many SPACs that went public are struggling to find deals, with an estimated 600 still searching.
Read more: Payments SPACs Face Reckoning as Clock Runs out on Investment Deadlines
Investors who put money into blank check companies could see a liquidity boost of more than $75 billion in the coming months, as SPACs that went public during the listings boom will probably have to return their cash.
Read more: SPAC Investors Prepare for Surge in Liquidations
Most SPACs have a two-year time frame to close an acquisition of a private company before they must return the raised money to investors. About $75 billion worth of SPACs will reach their expiry date between September and the end February 2023, with another $36 billion expected by next March.
PYMNTS reported about the phenomenon this summer, noting that the hard part of being a SPAC was closing the deal. Those that can’t close find themselves facing the same long road many companies found themselves in this year.
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