Vertex SPAC IPO's public tranche is 36.0 times subscribed; trading starts Thursday

VERTEX Technology Acquisition Corporation Ltd (VTAC) saw the public offer tranche 36.0 times subscribed at the close of its initial public offering (IPO), it said on Wednesday (Jan 19).

Units are expected to start trading on the Singapore Exchange mainboard at 2pm on Thursday.

VTAC, Singapore's first listed special purpose acquisition company (SPAC), had offered 11.8 million units at S$5 apiece.

Some 600,000 units were offered to the public, with more than 3,700 valid applications received for about 21.6 million units. There were roughly 890 successful applicants in the public offering.

The international placement tranche of 11.2 million units was about 8.8 times subscribed, with indications of interest received for 98.6 million units. This placement was open to institutional and other investors in Singapore, as well as foreign institutional and selected investors outside the United States.

Separate from the offering, 13 cornerstone investors subscribed for a combined 22.2 million cornerstone units. These investors include Temasek subsidiaries Venezio Investments and Fullerton Fund Management, as well as Dymon Asia Multi-Strategy Investment Master Fund, Asdew Acquisitions, and the Segantii Asia-Pacific Equity Multi-Strategy Fund.

SPACs are investment vehicles that go public with the aim of acquiring and merging with a suitable target company, in what is known as an "initial business combination".

The IPO raised gross proceeds of S$200 million in all from the issue of 40 million units, with the funds to be used for the initial business combination and deferred underwriting commissions.

VTAC chairman Chua Kee Lock said: "We will focus on achieving a successful initial business combination and seek to create long-term value for the target company and our stakeholders."

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