Vertex has launched the first Singapore SPAC, offering 11.2m units via placement and 0.6m units in a public offering. Each share is priced at $5 per unit and the IPO will close on 18 Jan 2022 at 12pm. VTAC will commence trading at 2pm on 20 Jan 2022.
 |
| VTAC Timeline of events |
I have previously covered the Vertex SPAC
here with a 2 Chilli ratings, hence will not do it again. If you want to participate in the poll on whether you will subscribe to VTAC, the link is
here.
My conclusion is that given the small float of 0.6m, it will be quite difficult to get the shares. I have applied for the placement tranche and received nothing. I will be giving the public offering a miss as I have a few priorities that needed cash, including the
de-coupling i spoke about.
It takes 3 SPACs to entrench the market?
There will be 3 SPACs coming to market in January:
- VTAC (public offering now)
- Pegasus Asia (public offering now)
- Novo Tellus Alpha Acquisition (prelim prospectus lodged)
If there is any "commonality", it is the fact that the 3 SPACs are linked to Temasek in one way or another either at the Sponsor level or at the SPAC level. Temasek has learned the hard way that to launch a "new product" or "asset class", you need high quality sponsors to entrench the standard first. Hence, you see Temasek being heavily involved here.
Temasek succeeded with REITs despite a poor first attempt because the Sponsors were good. However, the Business Trust was totally decimated by poor companies and the first business trust, Pacific Shipping Trust, has gone belly up. Temasek will likely "step away" when investors are more familiar and able to diligence the quality of the sponsors themselves.
Which SPAC do you rank 'first'?
I am sure the 3 SPACs already have a few targets in mind when they launch the IPO, so in my mind, the first acquisition will likely be made within 6 months. If you ask me how do I "rank" the 3 SPACs by the quality of the sponsors, it will be in the following order - Novo Tellus, VTAC and Pegasus. This is totally based on my gut feel and familiarity (or lack of) the Sponsors. How would you rank the Sponsors?
Where can I find the prospectus online?
Some of you have asked where to locate the prospectus, you can find them
here. Sometimes I really don't understand MAS and this is not the first time - why do they have to schedule maintenance during the day time on Sunday, can't they do it when everyone is asleep or when there are no offerings in the market?
An alternative place to find the prospectus will be on the SGX website
here.
Comments
You think this is worth a punt for some quick money?
Will the balloting table for past Ipo allocation be applicable? Don't wanna get too much also 😅
1. Downside is limited by the 100% cash less issuance cost so in the end nothing happens; you get back your money
2. Whether you can punt depends on how many other traders out there who just want to play the market. It’s the demand supply and greater fool theory for me. But the novelty should create some trading buzz until some get burnt 🥵
3. The supply is small so no matter how hard you apply, you will likely get very few allocations. Given the $5 mark, my gut feel is that it is meant to deter small investors as you need $5,000 to apply. if you apply for $50k, you will get $5,000 or 1k shares after Balloting.
4. Better be prepared to hold and be prepared for volatility based on news and rumours before the actual announcements are made.