VTAC, Singapore’s first SPAC, meets overwhelming demand from investors

Singapore one-dollar bill, showing satellite dishSingapore one-dollar bill, showing satellite dish

Vertex Technology Acquisition Corp., or VTAC, a special purpose acquisition company (SPAC), met with strong demand from institutional and retail investors for its initial public offering (IPO), according to a filing to SGX Wednesday. 

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

The public offering of 600,000 units was around 36 times oversubscribed, while the international placement of 11.2 million units was around 8.8 times subscribed, the filing said. 

The sale of the offering units, combined with the cornerstone units and the sponsor IPO units, or 40 million units in total, at S$5.00 raised S$200 million, the filing said. Each unit includes one share and 0.3 warrant per share, with an additional right to 0.2 warrant a share to be issued later to holders which haven’t tendered their shares for redemption at the time of the initial business combination, the filing said.

The units begin trading on SGX on Thursday at 2 p.m. SGT.

VTAC Chairman Chua Kee Lock said in the statement: “We believe the strong demand for units in VTAC underscores the trust that investors have in the competence of our management and the value of our Sponsor’s global network, well-established shareholder ecosystem and deep local expertise. The positive result from our IPO is only the beginning. From here on we will focus on achieving a successful initial business combination and seek to create long-term value for the target company and our stakeholders.”

The sponsor, Vertex Venture Holdings, is a Singapore-based venture capital company with more than US$5.1 billion in assets under management and a portfolio of more than 200 companies. Vertex Venture is owned by Singapore’s state-owned investment company Temasek Holdings.

VTAC also has 13 cornerstone investors which subscribed for a total 22.2 million units, with those investors including Temasek’s indirect subsidiaries Venezio Investments and Fullerton Fund Management, the filing said. The sponsor has also committed S$30 million in capital in the offering, the filing said.

An overallotment option has been granted to the stabilising manager, Credit Suisse (Singapore) for up to an additional 2.36 million units at the offering price, which have been allocated to the international placement, the filing said. The overallotment units will be borrowed from a subsidiary of the sponsor and will be returned later, the filing said.

Read more about the offering.