Singapore’s first spac Vertex Technology Acquisition Corporation (VTAC) has seen its public offer of 600,000 units 36 times subscribed as balloting closed on Jan 18.
In an announcement, the spac said its international placement of 11.2 million units to institutional and other investors in Singapore, foreign institutional and selected investors outside the US was 8.8 times subscribed.
The offering price for each unit is $5, comprising one ordinary share and 0.3 warrant share, with an additional right to 0.2 of one warrant per share.
Together with the gross proceeds from the issuance of the cornerstone units and sponsor IPO investment units, the total gross proceeds raised amount to $200 million, representing 40 million units. 100% of the gross proceeds will be placed in the Escrow account.
Trading will commence at 2.00pm on January 20 on the Mainboard of the Singapore Exchange.
VTAC chairman Chua Kee Lock said the strong demand for units in VTAC underscores the trust that investors have in the competence of its management, as well as the value of the sponsor’s global network, well-established shareholder ecosystem and deep local expertise.
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“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.”
VTAC secured 13 cornerstone investors to subscribe to an aggregate of 22.2 million cornerstone units, raising aggregate gross proceeds of $111 million. Two of these cornerstone investors are fellow Temasek subsidiaries Venezio Investments and Fullerton Fund Management.
The sponsor Vertex Ventures has also committed $30 million in capital through the subscription of units in VTAC by its wholly-owned subsidiary, Vertex Co-Investment Fund (Vertex SPV).
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Vertex will also contribute “at-risk” capital of up to $10 million through the subscription of 20 million private placement warrants concurrent with the offering.
Additionally, up to 10.59 million promote shares will be allotted and issued to Vertex SPV following the completion of the initial business combination, subject to time-based and price-based vesting conditions to ensure long-term commitment of the sponsor and alignment with VTAC shareholders.
Photo: Vertex Holdings
