Vertex Spac rises in Singapore trading debut

VTAC chairman Chua Kee Lock said they would focus on achieving a successful initial business combination and seek to create long-term value. PHOTO: LIANHE ZAOBAO

SINGAPORE (THE BUSINESS TIMES) - Singapore’s first listed special purpose acquisition company (Spac) rose as much as 5 per cent in its trading debut on Thursday (Jan 20) after its initial public offering (IPO) saw strong demand from retail and institutional investors.

Vertex Technology Acquisition Corp (VTAC) began trading at 2pm at $5.25 per unit, up from its IPO price of $5. At 2.13pm, VTAC was trading at $5.21, with some 745,000 units changing hands. 

Sponsored by Temasek-backed Vertex Venture Holdings, VTAC's retail tranche was 36 times subscribed when its IPO closed on Wednesday.

Some 600,000 units were offered to the public, with more than 3,700 valid applications received for about 21.6 million units. There were roughly 890 successful applicants in the public offering.

The international placement tranche of 11.2 million units was about 8.8 times subscribed, with indications of interest received for 98.6 million units. This placement was open to institutional and other investors in Singapore, as well as foreign institutional and selected investors outside the United States.

Separate from the offering, 13 cornerstone investors subscribed for a combined 22.2 million cornerstone units. These investors include Temasek subsidiaries Venezio Investments and Fullerton Fund Management, as well as Dymon Asia Multi-Strategy Investment Master Fund, Asdew Acquisitions and the Segantii Asia-Pacific Equity Multi-Strategy Fund.

Spacs are investment vehicles that go public with the aim of acquiring and merging with a suitable target company, in what is known as an "initial business combination".

The IPO raised gross proceeds of $200 million in all from the issue of 40 million units, with the funds to be used for the initial business combination and deferred underwriting commissions.

VTAC chairman Chua Kee Lock said: "We will focus on achieving a successful initial business combination and seek to create long-term value for the target company and our stakeholders."

• With additional information from The Straits Times

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