Tikehau Capital wins nod for SGX SPAC listing
EUROPEAN asset manager Tikehau Capital, together with its partner Financiere Agache, has received an eligibility-to-list (ETL) letter from the Singapore Exchange (SGX) for their special purpose acquisition company (SPAC).
The sponsor group received the ETL from SGX on Wednesday (Dec 29), and the sponsor group has also incorporated a company, Pegasus Asia, as a SPAC, according to people familiar with the matter.
Tikehau Capital and Financiere Agache plan to invest S$62 million in the SPAC through the subscription of units and through an unconditional forward purchase agreement. This is in addition to the sponsor's initial contribution of up to S$10 million of "at-risk" capital by purchasing warrants in the private placement.
The listing of Pegasus Asia is subject to certain conditions as well as the broader market environment.
The Business Times previously reported in October that Tikehau had submitted its application to list a SPAC on the SGX, with plans for Pegasus Asia to be focused on technology-enabled new economy sectors that have operations in the Asia-Pacific. This could include fintech, proptech, insurtech and digital services.
The application was to raise S$200 million, but this is a placeholder amount and the eventual amount raised from the initial public offering (IPO) could be larger.
Tikehau Capital is an alternative asset manager with 30.9 billion euros (S$47.4 billion) in assets under management as at end-June. Its key areas of focus include private equity and debt, as well as real assets.
The Financiere Agache group has significant dealings in the luxury goods sector via its controlling shareholdings in Christian Dior and LVMH. It also holds a portfolio of diversified financial investments.
Tikehau Capital and Financiere Agache - LVMH CEO Bernard Arnault's family office - have previously partnered on SPACs. Earlier this year, the sponsor group had raised a 500 million euro SPAC - Pegasus Europe - on Euronext Amsterdam.
SPACs are shell entities formed by a group of investors known as sponsors who raise capital via an IPO. The shell company has a set timeframe to identify and acquire a target company - known as a business combination or de-SPAC - which will result in taking the target company public.
SGX in September approved a framework for listing blank-cheque companies on the mainboard. It comes amid a broader push by the government to make the public equity markets in Singapore more conducive for growth companies.
A number of other sponsors have also been reported to be interested in listing SPACs on SGX.
On Dec 24, Temasek-backed Vertex Venture Holdings was the first sponsor to announce that it had received an ETL from SGX to list a SPAC. Vertex Venture plans to invest S$30 million in the SPAC - Vertex Technology Acquisition Corp - through the subscription of units and intends to contribute up to S$10 million of "at-risk" capital by purchasing warrants in a private placement, the company said in a bourse filing.
