Singapore firm launches 'blank cheque' company IPO on Nasdaq
Special purpose acquisition company set up to acquire business that aims to prove rewarding for investors.
HOMEGROWN 8i Group has launched and listed a special purpose acquisition company (SPAC) on Nasdaq, adding to an asset class that is increasingly attracting institutional and retail monies.
A SPAC is a "blank cheque company'', set up for the purpose of acquiring an operating business that can hopefully prove rewarding for investors. By subscribing to a SPAC initial public offer (IPO), investors hand over a proverbial blank cheque as they have no idea at the outset what business or businesses will eventually be acquired.
8i Enterprises Acquisition Corp raised US$50 million in its listing on Nasdaq in March, comprising 5 million units at US$10 per unit. 8i Enterprises is part of a group of companies founded and headed by James MengDong Tan, who has had more than two decades of senior management and transaction experience in Asia. He was former chief executive of Nasdaq-listed Moxian Inc, and a former director of Nasdaq-listed Pacific Internet, now part of Citic Telecom International Holdings.
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