Model Performance Acquisition, a Hong Kong-based blank check company led by ex-Templeton Asset Management North Asia private equity co-head Claudius Tsang, has filed with the US Securities and Exchange Commission (SEC) to raise up to $50 million in an initial public offering (IPO).
The special purpose acquisition company (SPAC) plans to offer 5 million units at $10 each, with each unit consisting of one share of common stock, one-half of a warrant, and one right to receive one-tenth of a share upon the consummation of an initial business combination.
The SPAC said its sponsor, First Euro Investments Limited, has agreed to purchase an aggregate of 220,000 units at a price of $10 per unit for a total purchase price of $2.2 million. At the proposed deal size, Model Performance Acquisition would command a market value of $65 million.
In its filing, Model Performance Acquisition said it will pursue prospective targets in Asia, particularly one or more growth businesses with a total enterprise value of between $200 million and $600 million.
“Although there is no restriction or limitation on what industry or geographic region our target operates in, it is our intention to pursue prospective targets that are in Asia,” according to the SPAC. It plans to list on the Nasdaq under the symbol MPACU.
Tsang, who has previously served as co-head of PE for North Asia at Templeton Asset Management and a partner at Templeton Private Equity Partners, serves as the firm’s CEO and chairman starting from this month.
He is joined by CFO, president, and director Serena Shie, whose current roles include serving as CEO of English print publication Jumpstart Media.
SPACs are companies without operations formed only to raise capital to acquire other businesses. They typically acquire firms as quickly as four to five months and are given up to two years to seek targets. If they cannot fulfil that mandate, they will have to return all the money to the public shareholders.
Global SPACs have raised as much as $24.26 billion in January 2021 alone. The total amount raised by SPACs in 2020 was $79 billion, according to data compiled by DealStreetAsia.
In Southeast Asia, the biggest SPAC is Bridgetown Holdings, which is backed by Hong Kong tycoon Richard Li and venture capitalist Peter Thiel. Bridgetown, which raised $595 million, is reportedly considering a potential merger with Indonesia’s e-commerce giant Tokopedia in a deal that could value the unicorn at $8 billion to $10 billion.