Novo Tellus lodges preliminary prospectus for $150m Spac listing on SGX; Vertex, Pegasus launch Spac IPOs

Novo Tellus Alpha Acquisition's chief executive and executive chairman Loke Wai San is also CEO and founder of Novo Tellus Capital Partners. PHOTO: AEM HOLDINGS

SINGAPORE - 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 on Thursday (Jan 13), 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, 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 on Thursday 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 opens at 8pm on Thursday and closes at 12pm on Jan 18, with trading to commence at 2pm on Jan 20.

There will be 11.2 million units offered via an international placement to institutional and other investors here and in the United States, 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 $111 million units or 55.5 per cent of the total.

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."

The Spac is focusing on investment themes such as cyber security, artificial intelligence, autonomous driving and digital healthcare.

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

He said the Spac will be looking for a fast-growing company that can benefit from the capital injection, regardless of where it is located. 

Mr Chua also noted that a target business must be “easily understood” by the market.

Pegasus Asia, which 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 an 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 opens at 9 pm on Thursday (Jan 13), and investors would have up till noon on Jan 19 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.

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