Anshuman Daga

SINGAPORE, (Reuters) – A SPAC (special purpose acquisition company), backed European asset manager Tikehau Kapital and a holding group of LVMH Chairman Bernard Arnault began trading in Singapore Friday. It is the second SPAC that has made its debut in this city-state.

These twin listings are also the first major appearance of such vehicles in Asia after the SPAC frenzy that erupted in the United States at the beginning of 2021, just before regulatory changes dampened investor sentiment.

Vertex (NASDAQ) Technology Acquisition Corp was listed on Thursday by the local bourse. This SPAC, which is backed Vertex Ventures and in turn, owned by Temasek, was backed by Vertex Ventures. Singapore Exchange (OTC) is aiming to be a major venue for SPAC listing.

Pegasus Asia raised S$170million ($126 Million) to fund its plans for investing in technology-enabled areas. It traded at a price that was close to the S$5 unit offer price.

SPACs are able to raise capital through initial public offerings. They then put the money into a trust in the hope of merging with private companies. This allows them to take the target company public faster than traditional listings and at higher valuations.

Singapore Exchange granted SPACs and shell firms the right to list on September 1st, after relaxing proposed rules to address market feedback. Citigroup UBS (NYSE:) is a joint issue manager and global coordinator for the Pegasus PAC.

($1 = 1.3468 Singapore dollars)