Vertex Venture Holdings, a subsidiary of Singapore state-owned investment company Temasek Holdings, said Friday it has received an eligibility-to-list letter from Singapore Exchange Securities Trading (SGX-ST) for its proposed special purpose acquisition company (SPAC).
A SPAC is essentially a “blank check” company, which raises funds in a public offering and seeks businesses or other assets to acquire later.
Vertex Venture’s SPAC, named Vertex Technology Acquisition Corp., or VTAC, has been incorporated in the Cayman Islands as an exempted private company, according to a filing to SGX Friday.
VTAC is seeking a mainboard listing on SGX, the filing said.
Vertex Venture, as VTAC’s sponsor, plants to invest S$30 million in the SPAC via a subscription to its units, and to contribute up to S$10 million of “at-risk” capital by purchasing warrants in a private placement at the same time as the listing on SGX, the filing said.
Earlier this year, SGX said it would allow SPACs to list in the city-state, making it among the first movers in the region.
SGX’s framework for allowing the investment vehicles includes SPACs having a minimum market capitalisation of S$150 million, and a requirement to make an acquisition within 24 months of the initial public offering (IPO), with a potential 12 month extension under certain conditions, the filing said.
Sponsors of SPACs must also subscribe to at least 2.5 percent to 3.5 percent of the IPO shares, units or warrants.