A blank-check firm backed by Hony Capital, which has investments in TikTok owner ByteDance and WeWork’s China unit, is looking to raise $300 million in an U.S. initial public offering, the Information reported, citing a person familiar with the matter.
Hony Capital Acquisition Corp, the special purpose acquisition company (SPAC), is planning to apply to list on Nasdaq, the Information said on Wednesday, citing a confidential listing application document.
Hony Capital, one of China’s biggest private-equity firms, did not immediately respond to a Reuters request for comment.
The SPAC will look to merge with companies that have a significant presence in China, mainly in sectors such as healthcare and consumer products, according to the report.
SPACs are shell companies that raise money through an IPO to take a private company public. In recent months, the popularity of using SPAC’s has exploded among startup companies who want to avoid the more traditional route of using an initial public offering to enter the market.