Peter Thiel-backed Bridgetown launches third SPAC, looks to raise $260m in IPO

REUTERS/Brendan McDermid

Billionaires Peter Thiel and Richard Li’s Bridgetown Holdings has launched a third blank cheque company that is now seeking to raise $260 million in an initial public offering (IPO) in the US, barely five months after their second special purpose acquisition company (SPAC) raised $299 million.

In a filing lodged at the US Securities and Exchange Commission, Thiel’s Thiel Capital and Li’s Pacific Century disclosed that they plan to offer 26 million Class A ordinary shares at $10 each to raise $260 million for Bridgetown 3 Holdings Limited.

Bridgetown Holdings, which described itself as a blank cheque company created to recombine businesses through purchases, reorganisations, and other means, also granted the underwriters a 45-day option to purchase up to an additional 3.9 million shares to cover over-allotments.

The SPAC intends to focus on a target with operations or prospective operations in the technology, financial services, or media sectors, which it refers to as “new economy sectors”, in Southeast Asia.

“We believe that Southeast Asia is entering a new era of economic growth, particularly in the new economy sectors, which we expect will result in attractive initial business combination opportunities for attractive risk-adjusted returns,” the firm said.

A joint report by Google, Temasek, and Bain & Company indicated that Southeast Asia’s internet economy crossed the $100 billion mark in 2020 and is poised to triple to an estimated $300 billion by 2025.

Unlike most SPACs though, Bridgetown 2’s offering will not contain warrants. It plans to list on the New York Stock Exchange under the symbol BTNC.

In January, Bridgetown raised $299 million in the IPO of Bridgetown 2 while the first SPAC raised $595 million in October to become the biggest in Southeast Asia so far.

Sources earlier told DealStreetAsia that Indonesian unicorn Traveloka is in advanced talks to list in the US through a merger with Bridgetown.

Globally, SPACs raised $92 billion from IPOs in the first three months of this year, according to Refinitiv data, already surpassing all of 2020.

SPACs are companies without operations that are formed only to raise capital to acquire other businesses. Merging with a SPAC has become an increasingly popular method for closely-held businesses to raise capital for growth.

Last month, Southeast Asia Grab Holdings agreed to merge with a SPAC backed by Altimeter Capital Management in a deal that values the ride-hailing and food delivery giant at approximately $39.6 billion.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.