Pegasus Asia, Singapore’s second SPAC, set for IPO trading debut

SGX building on Shenton Way in SingaporeSGX building on Shenton Way in Singapore

Pegasus Asia, Singapore’s second special purpose acquisition company, or SPAC, is set to begin trading on SGX on Friday, a day after the city-state’s first SPAC, Vertex Technology Acquisition Corp., or VTAC, made its debut.

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

Pegasus Asia  offered a total of 25.6 million units at S$5.00 each, raising gross proceeds of S$128 million, according to filings to SGX. The offering also has an over-allotment option for up to 4 million units, which has been exercised, the filings said.

Each unit includes one share and a half warrant, the filings said. Each whole warrant entitles the holder to subscribe for one share at S$5.75 each, the prospectus said.

The 600,000 Singapore public offering units were around 7.8 times subscribed, while the international offering of 25 million placement units was over-subscribed, the filing said.

Pegasus Asia’s sponsors are Temasek-backed Tikehau Capital, Financière Agache, Diego De Giorgi and Jean Pierre Mustier, the prospectus said.

Singapore state-owned investment company Temasek had a 4.1 percent interest in Tikehau Capital as of end-2020, according to Tikehau Capital’s 2020 annual report.

Financière Agache is a holding company controlled by the Agache company, which was previously named Groupe Arnault. The Financière Agache group carries out most of its business in the luxury-goods sector via its contolling ownership of Christian Dior, its website 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.

“We believe that our sponsors’ networks and business connectivity will enable the identification of businesses that are not only attractive on a standalone basis but particularly benefit from the collective investment and operational expertise of the sponsors,” the prospectus said.

As a risk, the prospectus noted the SPAC may face “significant competition” for acquisitions due to increased interest in its target sectors, which can reduce the potential targets available or increase the pricing. 

Tikehau Capital and Financière Agache have subscribed for 2 million units each, in addition to founder shares and warrants, for a total commitment of S$13.63 million each, the prospectus said. 

Diego De Giorgi and Jean Pierre Mustier have subscribed for 200,000 units each, in addition to founder shares and warrants, for a total commitment of S$1.40 million each, the prospectus said.

The joint issue managers and global coordinators are Citigroup Global Markets Singapore and UBS’ Singapore branch, while OCBC is the joint global coordinator, bookrunner and underwriter, the filing said. 

Citigroup Global Markets Singapore, UBS’ Singapore branch, OCBC, China International Capital Corp. (Singapore) and UOB Kay Hian are the joint bookrunners and underwriters, the filing said. 

UBS Asset Management (Singapore), which is part of UBS group, was allocated 1.49 million units, and Tan Hwei Ling (Chen Huiling) a director of UOB Kay Hian, was allocated 44,000 units, the filing said.