Hong Kong’s New Frontier Group in talks to raise second SPAC IPO

Hong Kong’s New Frontier Group is in talks with investment banks about an initial public offering (IPO) via a special-purpose acquisition company (SPAC), four people with knowledge of the matter told Reuters.

The China-focused investment firm, co-founded by property developer Nan Fung Group’s chairman Anthony Leung, aims to raise $300 million from the SPAC IPO, said one of the people, who declined to be named as the information is confidential.

New Frontier is tapping the SPAC market a second time after raising $250 million via a SPAC IPO in June 2018.

Typically a SPAC, or blank cheque company, will raise funds to acquire a private company with the purpose of taking it public, allowing such targets to sidestep a traditional IPO, and issue shares at $10 apiece.

It was not immediately clear what sector the second SPAC would target, but New Frontier on its website said it has interests in healthcare, internet, artificial intelligence, big data, education and financial services.

New Frontier did not immediately respond to a request for comment.

The company’s first SPAC, New Frontier Health (NFH), acquired Chinese healthcare services company United Family Healthcare in July 2019 for an enterprise value of $1.44 billion.

In February, NFH received an offer to be bought out by a consortium of investors in a deal that values the healthcare service provider at nearly $1.72 billion.

Worldwide, SPAC IPO proceeds have amounted to $60 billion this year, or 76% of 2020’s total of $79 billion, Refinitiv data showed.

A number of Hong Kong-based family businesses have considered SPAC IPOs recently, including luxury Rosewood Hotel Group, a unit of property developer New World Development and the family office of property tycoon Li Ka-shing, Reuters has reported.

Reuters

Singapore Reporter/s

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

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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.