Tikehau Capital gets nod for Spac listing in Singapore

Tikehau Capital, along with partner Financiere Agache, received an eligibility-to-list letter from SGX. ST PHOTO: KUA CHEE SIONG

SINGAPORE - Singapore has given conditional approval to a second blank cheque company listing here.

European asset manager Tikehau Capital, along with partner Financiere Agache, received an eligibility-to-list letter from the Singapore Exchange (SGX) on Wednesday (Dec 29), sources familiar with the matter said.

The firms have incorporated a company called Pegasus Asia as a special purpose acquisition company (Spac).

Also known as a blank cheque company, a Spac is essentially a shell company set up by investors with the sole purpose of raising money through an an initial public offering (IPO) to eventually acquire another company.

Last week, Temasek Holdings-backed Vertex Venture Holdings became the first to win a nod for a Spac listing in Singapore.

Singapore buyout firm Novo Tellus Capital Partners is also reported to have applied for a Spac listing with SGX.

SGX, which has struggled to clinch big tech listings, unveiled rules to allow for Spac listings in September to lure promising high-growth companies to list here. The Singapore stock market is dominated by finance and property stocks.

As sponsors, Tikehau Capital and Financiere Agache plan to invest $62 million in the Spac and any potential acquisition, the sources said. This is in addition to the sponsor group's initial contribution of up to $10 million of "at-risk" capital, made by purchasing warrants in the private placement.

The listing of Pegasus Asia is subject to certain conditions as well as the broader market environment.

The Straits Times reported in October that Tikehau Capital and its partner filed for a Singapore Spac listing. While the IPO application was for $200 million, this is only a placeholder amount and the real proceeds raised from the IPO will be larger, sources said then.

Their Spac, Pegasus Asia, will focus on acquiring a company in a technology-enabled new economy sector that has operations in the Asia-Pacific, ST reported. This could include fintech, property tech, insurance tech and digital services.

This will be their second Spac together for Tikehau Capital, which also counts Temasek as a shareholder, and Financiere Agache, the Arnault family investment firm that controls luxury goods company LVMH.

Earlier this year, they raised €500 million (S$766 million) to list Pegasus Acquisition Company Europe in Amsterdam, the largest Spac to date in Europe.

Spacs exploded in popularity globally in 2020 as an alternative way for private businesses to list on stock exchanges since they bypass the traditional IPO route which can be a time-consuming and complicated process. But Spac fever cooled in the first half of this year as financial regulators stepped up their scrutiny.

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