After a strong start to 2021, the overcrowded US market for special purpose acquisition company (SPAC) initial public offerings (IPOs) has fallen from grace — at least for now. But that has not stopped Asian financial markets gearing up to attract their own listings of so-called ‘blank cheque’ vehicles. Citi’s Hong Kong-based equity team hopes to continue its already busy record with Asia-Pacific SPACs and their associated de-SPAC transactions (where a SPAC acquires a company, taking it public in the process).
“Asia is better suited to this product, because of its huge number of new economy ‘unicorns’ and emerging businesses,” insists Udhay Furtado, Citi’s co-head of Asia-Pacific equity capital markets (ECM), referring to companies valued at more than $1bn. “SPACs offer them a strong alternative to getting listed.”
