Temasek-backed Heliconia Capital is considering a special purpose acquisition company (SPAC) listing on the Singapore Exchange (SGX), according to several sources familiar with the development.
One source aware of the deal told DealStreetAsia that Heliconia is looking at a S$250-million ($186.3 million) vehicle, with discussions still in the early stages.
A separate source added that Heliconia was led to consider a SPAC listing under the persuasion of its parent company Temasek Holdings, which has been closely involved with the SGX in getting its SPAC framework off the ground.
DealStreetAsia did not receive a response from Heliconia at the time of publishing this article.
SPAC listings were given the green light by SGX at the beginning of September, following months of an intense market study assessing the viability of the blank cheque vehicle.
The move to allow SPACs by the exchange was aimed at attracting higher-quality companies and investors in order to bolster its position as a destination for Asian listings. The SGX has sustained a spate of delistings and poor liquidity in the last few years – a trend the Asian bourse hopes to reverse.
The SGX’s latest SPAC framework has been welcomed by stakeholders so far. It outlines a list of commercial-friendly regulations including a lower SPAC market cap of S$150 million and detachable warrants.
Several fund managers are reportedly looking into launching an SGX-listed SPAC, including Vertex Holdings, Turmeric Capital and Tikehau Capital. Last week, Novo Tellus told DealStreetAsia in an exclusive interview that the Singaporean private equity firm is looking at listing a S$200 million SPAC in early 2022.
Last week, DealStreetAsia reported that SGX is also in the midst of roping in an “anchor investor” for an upcoming pipeline of SPACs to build momentum for the asset class on the bourse. Sources had revealed that this will likely be Temasek Holdings, Singapore’s state investor.
Building liquidity for the SPAC is seen as the next step for SGX, now that it has launched its SPAC blueprint for stakeholders. Sources explained that more direct involvement by Temasek or any Singapore government-backed entity would be seen as a way to boost investor participation due to its status as a global investor.
Temasek Holdings oversees a global portfolio value of S$381 billion ($283 billion), which is at a record high, as of March 31, according to its latest investment review. It also posted a one-year return of 24.53% to shareholders, with most it underpinned by global equity rallies and IPO gains in portfolio companies such as Airbnb, Roblox, and Doordash.