THE public offer tranche of Novo Tellus Alpha Acquisition (NTAA) was 7.6 times subscribed at the close of its initial public offering (IPO), it said on Wednesday (Jan 26).

The international placement tranche of 9.5 million units was about 3.1 times subscribed. Overall, the offering was 3.4 times subscribed.

Units are expected to start trading on the Singapore Exchange mainboard at 9 am on Thursday.

NTAA, Singapore's third listed special purpose acquisition company (SPAC), had offered 30 million units at S$5 apiece.

Some 13 cornerstone investors had also subscribed to 16 million units. The two largest cornerstone investors, Affin Hwang Asset Management Berhad and Temasek-owned Venezio Investments had subscribed for a total of 4.3 million units.

NTAA's sponsor group consists of the sponsor general partner New Earth Group 2, Novo Tellus Capital Partners and the private equity funds which it advises, Novo Tellus PE Funds 1 and 2.

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Each of the IPO units consists of 1 Class A share of NTAA, and half a public warrant. A whole public warrant entitles the holder to subscribe for 1 Class A share at the price of S$5.75 apiece. Holders of these Class A shares will be able to redeem their shares for a pro-rata portion of the SPAC's account in escrow at the business combination vote.

Novo Tellus PE Fund 2 committed approximately S$7 million of at-risk capital through the subscription of warrants in a private placement of 14 million warrants at S$0.50 per warrant.

The over-allotment option has been exercised with 2 million units allocated to the international offering.

The gross proceeds of S$150 million (excluding the over-allotment option) will primarily be used for the consummation of the initial business combination, the payment of deferred underwriting commissions, and payment to independent shareholders who have properly elected to redeem their Class A shares.

Loke Wai San, executive chairman and chief executive of NTAA, said that the SPAC will "endeavour to deliver a quality business combination that will create sustained value for NTAA unitholders".

Said Keith Toh, executive director and president of NTAA: "Novo Tellus is highly selective as an investor. We seek not just to find a distinctive de-SPAC opportunity, but more importantly, we look to partner closely with the target company to build strong returns over time, to grow earnings and provide investor support for the long term."

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