Four months after the rule change, Singapore's first SPAC debuts and ends the day 1% higher.

• The stock's price fluctuated between $5.25 and $5.05 Singapore dollars before closing at $5.05, resulting in a 1% increase from its initial offer price.
• Other Temasek subsidiaries, including Venezio Investments and Fullerton Fund Management, contributed $200 million to VTAC's fundraising efforts.
• The company intends to acquire a business within two years of its listing date, with a focus on cybersecurity, artificial intelligence, and fintech.

On Thursday afternoon, Singapore's first blank check company began trading on the country's stock exchange, four months after the bourse introduced new rules allowing special purpose acquisition companies (SPACs) to list.

VTAC, a wholly owned subsidiary of Temasek Holdings, is sponsored by Vertex Venture Holdings.

The retail tranche of 600,000 units in the SPAC's initial public offering was 36 times subscribed at an offer price of $5 Singapore dollars.

The stock's price fluctuated between $5.25 and $5.05 Singapore dollars before closing at $5.05, resulting in a 1% increase from its initial offer price.

The company obtained more than $148 million Singapore dollars from investors, including other Temasek subsidiaries Venezio Investments and Fullerton Fund Management.

VTAC aims to acquire a business within two years of its listing date, with a focus on cybersecurity, artificial intelligence, and fintech.

Recently, SPACs have gained popularity and are created solely to obtain capital from investors to acquire one or more operating businesses. They achieve this through an initial public offering and utilize the funds to merge with a private company, allowing them to go public without the lengthy traditional IPO process.

Bid to attract more companies

EY Asia-Pacific IPO leader Ringo Choi stated that Singapore may attract companies to its stock market by promoting Special Purpose Acquisition Companies (SPACs).

If a company has the opportunity, they may prefer to go for a Singapore SPAC IPO rather than being listed in Hong Kong, Malaysia, or other ASEAN countries.

The blank check company is heavily oversubscribed, which may allow firms to price shares higher in Singapore.

The authorities are eager to introduce new pathways to boost Singapore's competitive position as a financial hub with high trading volumes, as the city state has seen average IPO sizes decline and thin liquidity in recent years, said Choi.

Singapore is one of the first markets in Asia to allow such listings.

IQ-EQ Asia's CEO, Michael Marquardt, characterized Singapore's stance on SPACs as conservative due to its recent relaxation of regulations.

By committing to a safe and regulated capital market environment, SPACs will attract more inflows and provide investors with the confidence they need to trigger new listings, he stated in an email.

In Asia's financial hubs, more SPACs are predicted to start listing, as Marquardt forecasted.

The changes to Hong Kong's listing regime, which took effect at the beginning of the year, will encourage SPAC activity in Asia through these rule revisions across both jurisdictions.