By Anshuman Daga
SINGAPORE (Reuters) – A special purpose acquisition company (SPAC), backed by European asset manager Tikehau Capital and a holding firm of LVMH Chairman Bernard Arnault, began trading in Singapore on Friday, becoming the second SPAC to debut in the city-state.
The twin listings also mark the first major debut of such vehicles in Asia since a SPAC frenzy in the United States in early 2021 prior to regulatory change there dampening investor sentiment.
On Thursday, Vertex Technology Acquisition Corp, a SPAC backed by Vertex Ventures – in turn owned by state investor Temasek – became the first such structure to list on the local bourse. Singapore Exchange aims to become a key venue for SPAC listings.
Pegasus Asia, which raised S$170 million ($126 million) and plans to invest in tech-enabled sectors, traded little changed from its offer price of S$5 per unit.
SPACs raise money in initial public offerings which they put it in a trust with the aim of merging with a private company, essentially taking the target public in a time frame typically shorter than in a traditional listing and with stronger valuations.
In September, Singapore Exchange allowed SPACs or shell firms to list after easing proposed rules in response to market feedback. Citigroup and UBS are joint issue managers and global coordinators on the Pegasus SPAC.
($1 = 1.3468 Singapore dollars)
(Reporting by Anshuman Daga; Editing by Christopher Cushing)
