SPACs Take Center Stage in Singapore with Three Listings

Two special purpose acquisition companies (SPACs) started trading in Singapore since the start of the new year, and a third SPAC is set to follow soon, as the Southeast Asian country strives to position itself as a center of activity for SPACs in the region.

SPACs have gotten the attention of investors and others in Asia, with Grab being its biggest buzz generator to go public via the blank check company route, CNBC and other media outlets reported on Friday (Jan. 21).

Vertex Technology Acquisition Corporation, Singapore’s first SPAC, started trading on the Singapore Exchange on Thursday (Jan. 20). Its second, Pegasus Asia, debuted on Friday (Jan. 21).

See also: Singapore Exchange may Relax Guidelines for SPAC Listings

Shares of Pegasus Asia began trading on Friday (Jan. 21) at 5.01 Singapore dollars ($3.73), close to the initial offer price of 5 Singapore dollars ($3.72). Its IPO gave the company gross proceeds of $170 million Singapore dollars ($126 million), according to the report.

Aside from being Singapore’s first SPAC listing, Pegasus Asia is also the first SPAC with international investors. Global backers include Tikehau Capital and Financière Agache.

Neil Parekh, CEO and non-independent director at Pegasus Asia, told CNBC that the company was “quite confident” they would find just the right company to acquire.

Parekh, who also has leadership roles at Tikehau Capital, said the blank check company is targeting tech-savvy businesses in multiple sectors, including FinTech, real estate, health and consumer.

Read more: Grab Readies for Dec. 2 Nasdaq Opening

The SPAC rush in the new year follows 2021’s rule changes implemented by the Singapore Exchange that gave SPACs the green light to list on the bourse’s main board. The rules mandate that a SPAC must have a market capitalization of $150 million Singapore dollars, plus a “24-month timeframe to de-SPAC,” per the report.

Parekh told CNBC that Tikehau Capital was eyeing several businesses looking to list on the Singapore Exchange following the release of Singapore’s consultation paper for SPACs.

“We had a chance to look at that very closely and contribute some ideas to that,” Parekh said.