Singapore-based SPAC files to go public via Nasdaq in US$100m IPO

SINGAPORE-BASED special purpose acquisition company (SPAC), Fat Projects Acquisition Corp, has filed to go public via Nasdaq in a US$100 million initial public offering (IPO), the company said on Thursday.

The company's sponsor, Fat Projects SPAC, is an affiliate of Fat Projects, which is a Singapore-headquartered investment and venture studio.

SPACs are blank-cheque or shell companies formed by a group of investors - known as sponsors - that raise cash through an IPO for the purpose of acquiring an existing company.

After the funds are raised, the sponsor of an SPAC will have a fixed time frame to "de-SPAC", which is to identify a target company and complete a merger or acquisition. If a suitable deal is not found, investors can redeem their capital.

Earlier this year in March, the Singapore Exchange launched a consultation on SPACs, as it prepares to compete in one of the biggest capital market trends in the past year.

Regulators have proposed requirements including a minimum S$300 market capitalisation threshold for listing an SPAC as well as a more stringent requirement than the US for warrants and share redemption.

Fat Projects Acquisition Corp said it has proposed an IPO listing of 10,000,000 units at a price of US$10 per unit, consisting of one Class A ordinary share and one-half of one redeemable warrant, on the Nasdaq stock market, under the symbol "FATP".

The company said it plans to focus on acquiring companies that are technology-led in the areas of supply chain, transportation, logistics, finance, sustainability, food, agriculture, e-commerce, Big Data, and also companies that will monetise the rapidly growing middle class and their evolving consumption and digital needs in South-east Asia.