Singapore makes bold foray into SPAC market, Temasek-backed firm lists

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SINGAPORE: Singapore, seeking to revive its lacklustre fundraising market, is pulling out all the stops to emerge as a key listing venue for smaller sized blank-check firms as a Temasek-backed firm debuts on Thursday (Jan 20). The listing sponsored by Vertex Venture Holdings comes four months after Singapo

SINGAPORE: Singapore, seeking to revive its lacklustre fundraising market, is pulling out all the stops to emerge as a key listing venue for smaller sized blank-check firms as a Temasek-backed firm debuts on Thursday .in response to market feedback.since they became the hottest deal-making frenzy in the US in early 2021 before fizzling out due to regulatory changes.

The SPAC is sponsored by Vertex Venture, which manages US$5.1 billion of assets with a portfolio of more than 200 companies. The SPAC has up to two years to find a target. While Singapore is considered one of Asia's leading financial and business hubs, its bourse has struggled to capture big IPOs. Last year, fundraising on SGX halved to US$565 million, a six-year low, with just eight listings, data from Refinitiv shows.

Since investors are unaware of the target company ahead of the IPO, SPACs often grant them the right to redeem their initial investment as an incentive.

 

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