Singapore-based Vertex Technology Acquisition Corporation, a special purpose acquisition company owned by Vertex Venture Holdings, has reportedly received an eligibility-to-list letter from SGX (Singapore Exchange).
According to the board of Temasek-backed Vertex Venture, the letter informed the company regarding its conditional eligibility for a Mainboard listing in Singapore. The move reportedly came after Vertex Venture had applied to Singapore Exchange for listing the newly incorporated Cayman Islands exempted private firm.
As per reliable sources, Vertex Technology Acquisition Corporation is the first blank-cheque firm in Singapore to have secured an eligibility-to-list letter from the bourse operator.
For the uninitiated, SPACs constitute shell corporations that are listed on a stock exchange with the intent of the acquisition of a private company, thus making the latter public without going via the conventional IPO (initial public offering) process.
The framework to permit blank-cheque companies was reportedly introduced in Singapore in early September 2021. Meanwhile, a number of local private companies have expressed openness to the possibility of merging with SGX-listed SPACs for going public.
Among other things, the SPAC listing is subject to prevailing market conditions as well as VTAC’s compliance with the conditions in the letter. As the sponsor, Vertex Venture plans an investment of around S$30 million in the Special Purpose Acquisition Company by subscribing for units in VTAC. Additionally, the company also plans to contribute a sum of up to S$10 million of “at-risk” capital via the purchase of warrant in a private placement concurrent with the listing.
Back in July 2021, Vertex Venture was planning to secure funds for deal-making by listing a blank-cheque firm in the city-state. Apart from Vertex Venture, additional entities weighing SPAC listings in Singapore comprise buyout firm Novo Tellus Partners; European alternative asset manager Tikehau Capital and its partner Financiere Agache; Internet entrepreneur Patrick Grove; and Ravi Thakran’s Turmeric Capital.