SPAC Digest: Chenghe Acquisition II raises $75m in IPO, Rising Dragon eyes $50m

SPAC Digest: Chenghe Acquisition II raises $75m in IPO, Rising Dragon eyes $50m

Photo by Sophie Backes on Unsplash

Asia-focused blank cheque company Chenghe Acquisition II has raised $75 million in its US IPO, while China’s Rising Dragon Acquisition has filed to raise $50 million in its IPO.

Chenghe Acquisition II raises $75m

Chenghe Acquisition II, a blank cheque company focused on Asian businesses, raised $75 million in its initial public offering (IPO) in the US, according to an announcement.

The special purpose acquisition company (SPAC) offered 7.5 million units at $10 each, with each unit consisting of one share of common stock and one-half of a warrant, which is exercisable at $11.50.

The units listed for trading on the New York Stock Exchange under the ticker symbol “CHEB.U” on June 7, 2024

The company said while it may pursue an acquisition opportunity in any business, industry, sector, or geographical location, it intends to focus its search on growing companies in Asian markets or global companies with a presence or focus in Asia.

The SPAC is led by CEO and director Anna Zhou, previously senior associate at Mighty Divine Investment Management, and chairman Shibin Wang, co-founder and CEO of Hong Kong Digital Asset Ex.

Its predecessor, Chenghe Acquisition Co, raised $100 million in its US IPO in 2022.

China’s Rising Dragon Acquisition seeks $50m in US IPO

Rising Dragon Acquisition, a China-based SPAC targeting small-cap businesses, has filed to raise $50 million in an IPO in the US.

The company is offering 5 million units at an offering price of $10, with each unit consisting of one ordinary share and one right that entitles holders to receive one-tenth of one ordinary share upon consummation of a business combination.

Rising Dragon intends to pursue targets that are focused on green and sustainable business, new energy, cutting-edge technologies, artificial intelligence applications, business software, and healthcare products.

The company said it will target small-cap companies in North America, Europe, or Asia.

The SPAC is led by CEO and chairman Lulu Xing, currently chairman of Shanxi Qianmeng Construction Engineering and Shanxi Qianmeng Electromechanical Intelligent Engineering.

SPACs, also known as blank cheque companies, raise capital via traditional IPOs to acquire a privately held company. A merger with the publicly traded SPAC provides a private company with a cheap and fast listing route.

Edited by: Pramod Mathew

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