Fat Projects closed Nasdaq IPO of Southeast Asia-focused SPAC

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Fat Projects Acquisition Corp., a special purpose acquisition company (SPAC) closed its initial public offering (IPO) on the Nasdaq market, raising US$115 million to invest in Southeast Asian assets, the company said in a press release Monday.

A SPAC is essentially a “blank check” company, which raises funds in a public offering and seeks businesses or other assets to acquire later.

“While the company may pursue an initial business combination target in any business or industry, it intends to focus on targets with operations or prospective operations that are technology-led in the areas of supply chain, transportation, logistics, finance, sustainability, ESG, food, agriculture, e-commerce, big data and/or targets that are taking advantage of the monetization opportunities stemming from a rapidly growing middle class and their evolving consumption and digital needs in Southeast Asia,” Fat Projects said in the statement.

Fat Projects said in the prospectus it defines Southeast Asia as mainly Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam, but would also consider emerging markets such as Cambodia, Laos, Myanmar, Brunei and Timor Leste.

“Technology companies (often incubated in Singapore and Indonesia) are creating solutions to solve for some of the challenges (e.g. Grab’s incredible rise in Southeast Asia). This inflection point presents an opportunity for us to do an initial business combination with a company that can be scaled across the region,” Fat Projects had said in the prospectus.

Fat Projects sold 10 million units at US$10 each, which includes a warrant to buy on share at US$11.50 each, the company said, adding the over-allotment option was fully exercised for an additional 1.5 million units.

On Monday, the shares closed at US$10.03.

According to the prospectus, Fat Projects SPAC is currently the only major shareholder, retaining a 19.8 percent stake post-offering, which includes up to 375,000 founder shares.

Up to 10 anchor investors, or qualified institutional buyers or institutional accredited investors, expressed interest in purchasing up to 990,000 units in the offering, the prospectus said, adding those investors as a group could purchase no more than 11.4 million units, as the overallotment option was exercised.

According to a filing to the U.S. SEC, the K2 Principal Fund, K2 Genpar 2017, Shawn Kimmel Investments and K2 & Associates Investment Management acquired 950,000 shares each or an around 9.5 percent stake for each investor.

Trade began on Nasdaq last week.

Fat Projects is a Singapore-based investment entity, with investments in the technology, fintech, education, hospitality, e-commerce and food technology segments.