Anshuman Daaga

SINGAPORE (Reuters – A tiny blank-check business backed state investor Temasek launched its Singapore listing on Thursday. It marks the beginning of a new trend in Singapore to become a leading venue for such listings.

Four months ago, the Singapore Exchange (OTC:), allowed shell and special purpose acquisition firms (SPACs) to list. The easing of proposed rules was in response market feedback.

Vertex (NASDAQ) Venture’s SPAC was also listed. This marks the first major appearance of such vehicles in Asia after the frenzy in America in the early 2021st before any regulatory changes.

Chua Keelock, CEO, Vertex Venture, which is a Temasek subsidiary said, “As Singapore’s first SPAC,” at the listing ceremony. He was joined by bankers, lawyers, and company executives.

Vertex Technology Acquisition Corp was focused on fintech and cyber security. It raised S$200M ($148 Million) from 13 investors including Temasek linked entities as well as a Dymon Asia fund. 55% of the total capital.

SPAC was traded at S$5.16 per unit compared to its S$5 price after it was oversubscribed.

Vertex Venture is the sponsor of SPAC. It manages assets worth $5.1 billion and includes a portfolio that spans more than 200 businesses. The target can be found within two years.

Chua stated that the goal is to draw high-growth tech companies, which would otherwise not consider this market. Sponsors are now available who will also take on this risk,” Chua said to Reuters.

SPACs can raise funds through public offerings. The trust then aims to put that money in a trust. Finally, they will merge with a private firm and make it public. This is usually a shorter process and stronger valuations.

Pegasusasia, another SPAC, is backed European asset manager Tikehau Capital. This holding firm was also the chairman of LVMH. It listed on Friday.

SPAC worth S$150 Million, sponsored by Novo Tellus Capital Partners in Southeast Asia. It received investment from Temasek and other investors. The listing is scheduled for next week.

Southeast Asia’s fast-growing countries of Vietnam and Indonesia are experiencing an increase in dealmaking due to investors betting on technology investments after the pandemic.

SGX offers a similar regulatory structure to the United States. It allows retail investors to participate, but requires that sponsors invest in SPACs.

Analysts believe that SPACs could overvalue companies or not find the right targets, which are risks.

“HERE TO STAY”

Mohamed Nasser Ismail of SGX said that although there may be market gyrations at times, he believed the SPAC framework was here to stay. He also added that it complements traditional IPO routes.

SGX remains optimistic about SPAC listing by focusing its attention on sponsors’ track records, ensuring compulsory investment in SPACs, and maintaining due diligence in disclosures in SPACS that are similar to typical IPOs.

Singapore is a major financial and business center in Asia, but it has yet to be able to issue large IPOs.

Eng-Kwok Sit Moey is DBS’ chief of capital markets. He said that SPACs have been accepted by many investors to allow them to access start-ups, which usually tap the private equity market.

She said that “many Singaporean and regional businesses in high-growth high-tech industries will mature enough to list on public markets within the next years”, adding that they would be business combinations targets for SPACs on SGX.

Credit Suisse (SIX:), and DBS, are both joint Vertex SPAC issue managers and joint global coordinates. Morgan Stanley (NYSE:).

($1 = 1.3500 Singapore dollars)