Temasek-backed Vertex wins nod for SPAC listing on SGX

VERTEX Venture Holdings' special purpose acquisition company (SPAC), Vertex Technology Acquisition Corporation (VTAC), has received an eligibility-to-list letter from the Singapore Exchange (SGX).

In a bourse filing on Friday (Dec 24), the board of venture capital firm Vertex Venture, backed by Singapore's investment company Temasek, said the letter informed VTAC of its conditional eligibility for a Mainboard listing in Singapore.

That came after Vertex Venture had applied to SGX to list the newly incorporated Cayman Islands exempted private company. VTAC is now the first blank-cheque company in Singapore to receive an eligibility-to-list letter from the bourse operator.

The SPAC listing is subject to, among other things, VTAC's compliance with the conditions in the letter as well as the prevailing market conditions.

As the sponsor, Vertex Venture plans to invest S$30 million in the SPAC by subscribing for units in VTAC, and also intends to contribute up to S$10 million of "at-risk" capital by purchasing warrants in a private placement concurrent with the listing.

In July, Vertex Venture was reportedly planning to raise funds for dealmaking by listing a blank-cheque company in the city-state.

SPACs are shell corporations listed on a stock exchange with the purpose of acquiring a private company, thus making the latter public without going through the traditional initial public offering (IPO) process.

Singapore in early September introduced the framework to allow blank-cheque companies. Several local private companies have also told The Business Times (BT) that they were open to the possibility of merging with SGX-listed SPACs to go public.

Besides Vertex Venture, other entities weighing SPAC listings in Singapore include European alternative asset manager Tikehau Capital and its partner Financiere Agache; Singapore buyout firm Novo Tellus Partners, which focuses on technology and industrials; Ravi Thakran's Turmeric Capital; and Internet entrepreneur Patrick Grove.

BT also reported in October that healthcare-focused private equity firm Quadria Capital was working with advisers on a potential Singapore SPAC listing.

READ MORE:

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• Tikehau Capital submits application to SGX for S$200m SPAC IPO
• PE firm Quadria Capital eyes Singapore SPAC
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