Pegasus Asia, Singapore’s second SPAC, makes tepid debut

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Pegaus Asia, the second special purpose acquisition company, or SPAC, to list in Singapore, made a tepid debut Friday, finishing only a tad above its initial public offering (IPO) price.

The units ended Friday at S$5.02, the day’s high, just a blip above its IPO price of S$5.00. 

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

Singapore’s first SPAC, Vertex Technology Acquisition Corp., or VTAC, which started trading Thursday, had a modest bump higher on its debut, and closed Friday at S$5.05, compared with a S$5.00 IPO price. 

Pegasus Asia said Friday its IPO raised S$170 million in gross proceeds, after strong investor demand.

The Singapore public offering of 600,000 units was around 7.8 times subscribed, while the international offering had 29 million units, including 4 million over-allotment units, Pegasus Asia said in a filing to SGX Friday. The SPAC had said on Thursday that the international offering was oversubscribed.

Pegasus Asia’s sponsors are Temasek-backed Tikehau Capital, Financière Agache, which is controlled by the Arnault family holding company, and Pegasus Europe’s founders Diego De Giorgi and Jean Pierre Mustier, the prospectus said.

The sponsors plan to focus on technology-enabled sectors, including consumer tech, fintech, property tech (proptech), insurance tech, health tech and digital services, mainly, but not exclusively, in the Asia Pacific region, the filings said.

Antoine Flamarion and Mathieu Chabran, co-founders of Tikehau Capital, said they saw “great potential” in the Asian market. 

“Together with Financière Agache, we will leverage our global network and expertise in investing, diligence and capital raising in order to best identify Pegasus Asia’s target business in the technology-enabled sector and ensure its success,” the two said in the statement.

Neil Parekh, CEO of Pegasus Asia, said in a separate statement said the strong interest from the public and institutional investors was a sign of confidence in the sponsors. 

“With the successful listing of Pegasus Asia, we will immediately focus on seeking suitable targets for the business combination. The strong growth in technology-enabled sectors across the Asia Pacific region has nurtured many companies with disruptive business models in the new economy which are suitable de-SPAC candidates for us,” Parekh said.