A special purpose acquisition company (SPAC), backed by European asset manager Tikehau Capital (TKOO.PA) and a holding firm of LVMH Chairman Bernard Arnault. It became the second SPAC to list in Singapore on Friday as Asia investors warm to blank check firms.
Similar to Pegasus Europe and Pegasus Entrepreneurs launched in 2021. Pegasus Asia was launched by Tikehau Capital alongside co-sponsors Financière Agache, Jean-Pierre Mustier, and Diego De Giorgi. The sponsors collectively have an extensive proprietary network and resources to search and evaluate targets.
Last year, the Singapore Exchange announced rules that would allow SPACs to list on the bourse’s mainboard.
SPACs are shell companies set up to raise money through an initial public offering, with the sole purpose of merging with or acquiring an existing private company and taking it public. De-SPACing is the process of taking a private company public.
About SPAC deal
Pegasus Asia raised S$170 million (US$126 million) and plans to invest in tech-enabled sectors. It traded little changed from its offer price of S$5 per unit after the issue was heavily oversubscribed.
“We will immediately focus on seeking suitable targets for the business combination,” Pegasus Asia CEO Neil Parekh said at a listing ceremony on Friday.
“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 (merger) candidates,” he said.
Singapore Exchange, which allowed SPACs or shell firms to list after easing proposed rules in response to market feedback, aims to become a key venue for SPAC listings. Its international offering comprised 29 million offer units, including 4 million units overallotment to investors that Pegasus Asia can buyback with a put option.
The Singapore public offer of 600,000 offer units was 7.8 times oversubscribed. At its close on Wednesday noon, there were 1,108 valid applications for 4.68 million units worth $23.4 million Singapore dollars.
“The final rules came out and we felt the rules were very attractive, very good, balanced rules – guardrails to protect investors. At the same time, enough incentives for sponsors to do deals as well as for company founders to take advantage of going public through this route,” Parekh added.
Citigroup and UBS were joint issue managers on the SPAC.
ABOUT TIKEHAU CAPITAL
Tikehau Capital is a global alternative asset management group with €31.8 billion of assets under management (as of 30 September 2021). Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity, and capital markets strategies) as well as multi-asset and special opportunities strategies.
Tikehau Capital is a founder-led team with a differentiated business model. A strong balance sheet, proprietary global deal flow, and a track record of backing high-quality companies and executives.
Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA. It is shared by its 672 employees (as of 30 September 2021) across its 12 offices in Europe, Asia, and North America. Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP).
