In just half a month, the number of companies submitting spac (Special Purpose Acquisition company) prospectus applications to the Hong Kong Stock Exchange has increased to four.
The Chinese reporter of the securities firm noted that since the implementation of the SPAC system of the Hong Kong stock exchange, the enthusiasm of institutions applying for spac listing has not decreased. The proposed M & a direction is mainly in new economic industries, such as green energy, life science, advanced technology and manufacturing industry, medicine and health care, lifestyle companies in global consumption, etc.
The Chinese reporter of securities companies noted that among the institutions and investors behind the active adoption of SPAC listing, in addition to the sponsor Intermediaries - foreign investment banks and Chinese securities companies of China Merchants Bank International and Agricultural Bank of China International, there are also the familiar "Gymnastics Prince" Li Ning, ye Xiaoping and Chunhua capital under Hu Zuliu, And Longshi capital of Xie Guomin, former co president of Tencent music entertainment group.
According to the official website of the Hong Kong stock exchange, on February 4, the Hong Kong stock exchange held an internal spring festival opening ceremony. The chairman of the Hong Kong stock exchange, Shi Meilun, and the group's chief executive, Ou Guansheng, sounded the gong to welcome the first trading day of the year of the tiger.
Ou Guansheng, chief executive of HKEx, said that looking forward to the year of the tiger, Hong Kong will play an important role in promoting the rapid development of interdependent global capital markets. HKEx will continue to promote two-way capital flows between China and the world, while seizing all opportunities to shape the general trend of Hong Kong market and society.
four spacs submitted prospectus applications in half a month
Since January 17, the Hong Kong Stock Exchange ushered in the first case of SPAC company Aquila Acquisition Corporation (hereinafter referred to as "AAC"), many subsequent companies have followed up and submitted listing applications to the Hong Kong stock exchange.
Specifically, on January 28, tiger jade acquisition company (hereinafter referred to as "tiger jade"), the second spac company of the Hong Kong stock exchange, submitted a prospectus to the Hong Kong stock exchange to be listed on the main board of Hong Kong.
On January 31, two companies submitted spac listing applications to the Hong Kong Stock Exchange at the same time, namely Trinity acquisition Holdings Limited and Interra Acquisition Corporation.
The so-called spac (Special Purpose Acquisition Corporation) refers to a shell company. The sole purpose of this kind of company is to raise funds through initial public offering, and use the funds to acquire and merge the target company with business activities, so as to achieve the purpose of the successor company after merger to become a listed company.
As an alternative to traditional IPO, benefiting from the loose liquidity in Europe and America, the scale of SPAC has entered an explosive period in recent years, and the SPAC listing system has been officially implemented in Hong Kong since January 1, 2022.
The Chinese reporter of the securities firm noted that the proposed M & A fields to be focused by the four proposed spac companies in the future will focus on the new economic field of Greater China, advanced manufacturing, consumption, medicine and so on.
Among them, AAC prospectus reveals that its plan focuses on new economic industries in Asia (especially China), such as companies with science and technology empowerment in green energy, life sciences, advanced technology and manufacturing industries, and does not rule out looking for spac merger and acquisition targets in other industries.
According to the prospectus of tiger jade, intends to focus on the medical care or healthcare related companies that have or are expected to have operations in Greater China, including biotechnology, medical equipment, medical care services and consumer medicine.
According to the announcement of the prospectus of Trinity acquisition Holdings Limited, plans to focus on global consumer lifestyle companies with strong growth potential in China and can benefit from the professional operation knowledge and ability of the company's sponsors and management team.
The prospectus of Interra Acquisition Corporation disclosed that was established for business merger with one or more companies. The investment strategy focuses on high growth companies engaged in innovation and technology, consumption and new retail, high-end manufacturing, health care and climate action in Greater China.
Li Ning and Chunhua capital drink "first soup"
As a new listing system arrangement, which institutions are lurking behind the four spac companies to be listed? Let's see.
On January 17, AAC, the first spac company in Hong Kong, submitted a prospectus to the Hong Kong stock exchange. The sponsors: Morgan Stanley and China Merchants Bank International; Sponsor: CMB international asset management.
It is reported that the initiator of AAC is a member of CMB international asset management and AAC management team. Among them, CMB international asset management is an asset management company wholly-owned by CMB international, and CMB international is China Merchants Bank Co.Ltd(600036) an important overseas comprehensive financial platform.
On January 28, tiger jade, the second spac company in Hong Kong, submitted a prospectus to the Hong Kong stock exchange. The sponsor: UBS group; Sponsors: Taixin capital and Longshi capital.
It is understood that tiger jade sponsors are Taixin capital and Longshi capital, holding 90% and 10% shares respectively.
Taixin capital fund is a private equity fund initiated by Ye Xiaoping, chairman of Hangzhou Tigermed Consulting Co.Ltd(300347) (300347. SZ, 03347. HK), and Taixin capital fund management team (including executive directors Liu Ying and Jiang Weiqiang). Among them, on February 26, 2020, ye Xiaoping ranked 1303 in the 2020 Hurun global rich list with a wealth of 15 billion yuan.
Longshi capital is a comprehensive multi strategy asset management and financing platform jointly owned by Xie Guomin (former co president and executive director of Tencent music and entertainment group) and financial professionals and non-executive directors Zhang coltan and Zhang Cong.
On January 31, Trinity acquisition Holdings Limited submitted a prospectus to the Hong Kong stock exchange. Sponsors: JPMorgan Chase and Credit Suisse; Sponsors: Li Ning, Lane capital, etc.
It is reported that the sponsors of Trinity acquisition Holdings Limited are Li Ning, Lionrock (Lane capital general partnership group) and astrapto, who beneficially own 33%, 42% and 25% of all class B shares issued respectively.
Among them, Li Ning is one of the most famous and outstanding athletes and entrepreneurs in the 20th century. His legend continues in the 21st century. In addition to sports achievements, Li Ning is also an entrepreneur. He founded his sporting goods brand Li Ning with the same name in 1989. According to the market share in 2021, the brand has developed into one of China's leading sports brands.
On January 31, Interra Acquisition Corporation submitted a prospectus to the Hong Kong stock exchange.
Sponsors: Agricultural Bank of China International and JPMorgan Chase; Sponsors: Chunhua capital, Agricultural Bank of China International Asset Management.
It is understood that the sponsors of Interra Acquisition Corporation are Primavera LLC, ABC international asset management and its wholly-owned subsidiary abci am acquisition, holding 60% and 40% of the company's class B shares (initiator shares) respectively.
Primavera LLC is held by a number of people who are also the founder, partner and owner of Chunhua capital, a private equity group. Hu Zuliu is the single largest shareholder of Primavera LLC and holds more than one-third of the equity of Primavera LLC. Primavera LLC's management team is also Chunhua's management and executive team, including Chunhua capital partner and founding team member Chen Tong.
Industry insiders believe that the implementation of the new spac listing system of HKEx will directly benefit the recommendation intermediaries on the one hand, and help the venture capital institutions to realize the smooth exit of investment and obtain income on the other hand.
"The implementation of the SPAC system of the Hong Kong Stock Exchange has ushered in a large number of new business opportunities for investment banks and asset management in Hong Kong," Yang boguang, chief economist of Dongguan securities, previously told Chinese reporters of securities companies that securities companies with large overseas assets and operating licenses in Hong Kong will take the lead in benefiting.
Guosen Securities Co.Ltd(002736) analyst Wang Ding believes that looking forward to the future, the SPAC mechanism of Hong Kong stocks will be a major development opportunity for China's large securities companies. Large securities companies have a wide range of businesses and have accumulated mature teams in all business lines. By creating spac, they can not only contribute to the development of the country's new economy, but also strengthen the application skills of comprehensive strength and consolidate their market position. The innovation and promotion of SPAC system is expected to become an important market force in China's capital market reform. Together with the system reform, it will deepen the reform of capital market.
China Industrial Securities Co.Ltd(601377) Kong Xiang, chief financial analyst, said that it is estimated that there are nearly 5000 enterprises that meet the standard of "specialization and innovation" of the Ministry of industry and information technology, nearly 90% of which have not yet been listed, and there are abundant reserves of potential M & A targets of spac.
