Novo Tellus files prospectus for $150m Spac listing on SGX

Another special purpose acquisition company (Spac) has lodged a preliminary prospectus with the Monetary Authority of Singapore (MAS) for a listing on the Singapore Exchange (SGX).

Novo Tellus Alpha Acquisition, a Spac backed by Singapore-based Novo Tellus Capital Partners, filed its prospectus yesterday, a week after Vertex Technology Acquisition Corporation (VTAC) and Pegasus Asia.

Novo Tellus is offering 10 million units, each comprising one share and half a warrant, at $5 per unit.

There will be 9.5 million units offered by way of an international placement to institutional and other investors in Singapore and in the United States. The other 500,000 units will be offered to retail investors here.

A market capitalisation of $150 million is expected upon listing, based on the offer price of $5 and the post-initial public offer (IPO) share capital of 30 million shares.

The sponsor, Novo Tellus Capital Partners, will invest $20 million in the company, subscribing for four million units at $5 apiece. The Spac's chief executive and executive chairman, Mr Loke Wai San, is also CEO and founder of Novo Tellus Capital Partners and chairman of mainboard-listed semiconductor solutions provider AEM.

Novo Tellus Alpha Acquisition said it plans to focus on the technology and industrials sector in the Indo-Pacific region, looking at companies with seasoned leadership teams with deep experience, relationships and operating track records.

Meanwhile, the two other Spacs have lodged their final prospectuses.

VTAC, a Spac set up by Temasek unit Vertex Venture Holdings, registered its final prospectus with MAS yesterday after lodging the preliminary prospectus on Jan 6.

It is the first Spac to launch an IPO in Singapore.

VTAC is offering 11.8 million units at $5 apiece. A unit comprises one ordinary share and 0.3 of one warrant.

The IPO opened at 8pm yesterday and closes at noon next Tuesday, with trading to commence at 2pm next Thursday.

There will be 11.2 million units offered via an international placement to institutional and other investors here and in the US, and a public offering of the remaining 600,000 units in Singapore.

All the offering proceeds will be held in escrow.

VTAC said 13 cornerstone investors, including Venezio Investments and Fullerton Fund Management Company, which are both indirect subsidiaries of Temasek, will subscribe for 55.5 per cent of the total amount of units on offer.

The shares and warrants are expected to begin separate trading at 9am on March 7.

VTAC chairman Chua Kee Lock said: "VTAC will adopt a disciplined... approach in selecting an acquisition target, leveraging the sponsor's strong experience in venture capital investing to seek an initial business combination."

Mr Chua fielded questions at a briefing yesterday, including the possible regions that VTAC could be targeting for a de-Spac candidate.

Pegasus Asia, which also lodged its preliminary prospectus on Jan 6, also registered its final prospectus yesterday.

It is offering 25.6 million units at $5 apiece, of which 25 million units have been earmarked for international investors.

Pegasus is sponsored by European asset manager Tikehau Capital as well as Financiere Agache, which is LVMH chief executive Bernard Arnault's family office.

The public offer for Pegasus Asia's IPO opened at 9pm yesterday, and investors would have up till noon next Wednesday to subscribe for units.

Ms Eng-Kwok Seat Moey, group head of capital markets at DBS Bank, which is the joint issue manager and underwriter for Novo Tellus Alpha Acquisition, noted that several Singaporean and regional companies in high-growth sectors will be mature for listing on public markets in the coming years.

"These companies will provide fertile grounds for business combination targets for Spacs listed on SGX," she added.