SINGAPORE: Singapore, looking for to revive its lacklustre fundraising market, is pulling out all of the stops to emerge as a key itemizing venue for smaller sized blank-check companies as a Temasek-backed firm debuts on Thursday (Jan 20).
The itemizing sponsored by Vertex Venture Holdings comes 4 months after Singapore Exchange relaxed its proposed rules for special purpose acquisition companies (SPACs) in response to market suggestions.
Singapore’s inaugural SPAC itemizing will even mark the first major debut of such vehicles in Asia since they grew to become the most popular deal-making frenzy within the US in early 2021 earlier than really fizzling out on account of regulatory adjustments.
“The point is to attract high-growth technology companies which conventionally would not have considered this market and now they have sponsors who can take over the risk also,” stated Chua Kee Lock, CEO of Vertex Venture, a subsidiary of state investor Temasek.
With a deal with sectors reminiscent of cybersecurity and fintech, Vertex Technology Acquisition Corp raised S$200 million, with 13 cornerstone buyers reminiscent of Temasek-linked entities and a fund operated by Dymon Asia, contributing 55 per cent.
The SPAC is sponsored by Vertex Venture, which manages US$5.1 billion of belongings with a portfolio of greater than 200 firms. The SPAC has as much as two years to discover a goal.
The second SPAC, Pegasus Asia, backed by European asset supervisor Tikehau Capital and Financiere Agache, the holding firm of LVMH luxurious items chief Bernard Arnault, raised S$150 million. It plans to spend money on tech-enabled sectors and can record on Friday.
Southeast Asia, house to fast-growing economies reminiscent of Indonesia and Vietnam, is seeing a growth in deal-making as buyers guess on post-pandemic know-how performs in a area of 650 million individuals.
While Singapore is taken into account one among Asia’s main monetary and enterprise hubs, its bourse has struggled to seize massive IPOs. Last 12 months, fundraising on SGX halved to US$565 million, a six-year low, with simply eight listings, knowledge from Refinitiv exhibits.