PE firm Quadria Capital eyes Singapore SPAC

PRIVATE equity firm Quadria Capital is considering setting up a special purpose acquisition company (SPAC) to list on the Singapore Exchange, a move which would make it one of the frontrunners to launch a blank-cheque company in the local market, people familiar with the matter said.

The Singapore-based firm, which focuses on healthcare investments around South and South-east Asia, is working with advisors on the potential SPAC listing, said the people, asking not to be named as the process is private. Details - including size and timeline - have not been finalised.

Deliberations are at an early stage and the firm may decide not to proceed with the SPAC listing, one of the people said. Quadria Capital's spokesperson declined to comment.

So far, the new framework has drummed up interest from several parties. Quadria Capital would join the likes of Temasek-backed Vertex Holdings, buyout firm Novo Tellus, Ravi Thakran's Turmeric Capital, European asset manager Tikehau Capital and Internet entrepreneur Patrick Grove as potential aspirants.

One of the largest healthcare-focused PE funds in Asia, Quadria Capital has over US$2.6 billion in managed capital. The firm raised US$595 million for its second healthcare fund in March last year, according to its website. Investors include leading global asset managers, pension funds, sovereign wealth funds and development finance institutions across the US, Europe and Asia.

Quadria Capital's portfolio includes Singapore's multi-speciality medical group, MWH holdings, the holding company for the Singapore Heart, Stroke and Cancer Centre, as well as AKUMS Drugs and Pharmaceuticals, India's largest pharmaceutical company.

One of the hottest trends in global markets, SPACs have raised US$131.3 billion so far this year, already exceeding the US$83.4 billion issuance in all of last year, according to data from SPAC Research. Singapore is hoping to get a slice of that pie even as interest in these vehicles fade fast and attract greater scrutiny from global regulators.

SGX on Sep 3 became the first major bourse in Asia to allow blank-cheque companies to list.

There is some hope that these corporate shells - whose sole purpose is to raise money by listing on the stock market before hunting for a private company to merge with - could help liven up the capital markets in Singapore.

SGX has for years struggled to attract fast-growing and high-profile companies to its exchange. Low liquidity and underwhelming valuations have prompted a string of companies to delist, while some of the city-state's promising tech companies including Grab and Sea have chosen to list in the US.

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