Singapore Set For First SPAC Listings With Vertex, Pegasus

(Bloomberg) -- Singapore is about to get its first blank-check listings, as special purpose acquisition companies backed by Temasek Holdings Pte. and Tikehau Capital SCA kicked off their sales.

Vertex Technology Acquisition Corporation Ltd., sponsored by state investor Temasek's Vertex Venture Holdings Ltd., is seeking at least S$170 million ($125 million) in its initial public offering, while Tikehau-backed Pegasus Asia could raise at least S$150 million, prospectuses filed on Thursday showed.

VTAC is poised to inaugurate Singapore's framework for blank-check firms, which was unveiled in September. A SPAC-driven increase in deals would benefit Singapore's paltry listing volumes, adding liquidity to a market that hosted just eight IPOs last year worth about $1 billion in total.

The blank-check company is offering 34 million units at S$5 each. If the greenshoe option is fully exercised, the amount could increase to S$182 million.

Pegasus Asia, whose sponsors also include Financiere Agache and serial SPAC entrepreneurs Diego De Giorgi and Jean Pierre Mustier, is offering 25.6 million units at S$5 each, while its backers are investing S$22 million in the IPO, the prospectus showed. An additional S$20 million could be raised through a greenshoe option.

VTAC's offering lured 13 cornerstone investors, which are subscribing to about S$111 million worth of units, or nearly 65% of the entire offer. Bookbuilding will last until Jan. 13, with allocation expected the following day and the listing slated for Jan. 21, according to terms of the deal obtained by Bloomberg News.

The blank-check firm will focus on six investment themes, including cybersecurity, artificial intelligence and consumer internet and technologies.

Pegasus Asia will take orders until Jan. 12 with its listing scheduled for Jan. 25, terms of the deal obtained by Bloomberg News show. The SPAC will seek a target in consumer tech, fintech, property tech, health tech and other sectors, primarily in Asia. Tikehau and Financiere Agache have also committed as much as S$40 million combined for a private placement upon closing a deal.

Both Pegasus and VTAC have 24 months to complete an acquisition, subject to a 12-month extension.

Credit Suisse Group AG, DBS Group Holdings Ltd. and Morgan Stanley are joint issue managers and global coordinators on VTAC's offering, while Citigroup Inc. and UBS Group AG are leading Pegasus's IPO.

The lineup for blank-check listings in Singapore also includes Novo Tellus Capital Partners Pte., which has already received approval from the city's stock exchange to come to market.