OCA Acquisition, a blank cheque company sponsored by private equity firm Olympus Capital Asia, has priced its initial public offering (IPO) of 13 million units at $10 each, with the aim of raising $130 million in the US.
In a statement, OCA said each unit issued in the offering consists of one share of the company’s Class A common stock and one-half of one redeemable warrant. The units will be listed on the Nasdaq under the ticker symbol OCAXU.
OCA’s sponsor is Olympus Capital Asia V, the fifth pan-Asia PE fund of Olympus Capital Asia. The SPAC said it will not be limited to a particular industry or geographic region.
“Our acquisition and value creation strategy will be to identify, acquire and assist a US company in the target sectors with leveraging digitisation/technology and driving US-Asia cross-border value-add as common themes underpinning our investment thesis where we can help the target expand or accelerate its presence in Asia,” OCA said in its prospectus.
OCA Acquisition said it intends to capitalise on the ability of the management team and the broader Olympus Capital platform primarily to identify and acquire a US business in the technology-enabled business services, including healthcare and education, or financial services sectors, with enterprise values ranging from $750 million to $1 billion.
The SPAC is led by CEO and Director David Shen, who joined Olympus Capital in 1998 and currently serves as a regional managing director. He is joined by CFO and director Jeffrey Glat, who currently serves as CFO and managing director of Olympus Capital.
Olympus Capital co-founder Daniel Mintz serves as a director.
Olympus Capital invests in middle-market companies in markets such as China, India, Southeast Asia, South Korea, and Japan. It typically cuts cheques ranging from $20 million to over $200 million in companies with revenues between $100 million and $2 billion.
Since it was founded in Hong Kong and New York in 1997, Olympus Capital Asia has invested more than $2.6 billion of capital on behalf of its funds and co-investors in over 65 portfolio companies.
OCA Acquisition joins a wave of SPACs that are seeking to raise or have raised capital through US IPOs. SPACs are companies without operations that are formed only to raise capital to acquire other businesses.
SPACs typically acquire firms as quickly as four to five months. They are given up to two years to seek targets. If they can’t fulfill that mandate, they will have to return all the money to the public shareholders.
Early this week, SVF Investment Corp, an AI-focused blank cheque company targeting artificial intelligence, has raised $525 million in its IPO in the US after pricing 52.5 million units at $10 each.
The SPAC is sponsored by SoftBank Investment Advisers (SBIA), which runs the $100 billion Vision Fund.
Hong Kong-based SPAC Provident Acquisition also managed to raise $200 million in an IPO in the US as it seeks to acquire consumption-focused firms in Southeast Asia.
The biggest SPAC focused on Southeast Asia 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.