Blank-cheque firm of former HKMA chief Norman Chan completes US$127 million IPO as Hong Kong’s third SPAC listing
- The special purpose acquisition company is co-owned by Chan and two family members of the city’s former chief executive Donald Tsang Yam-kuen
- The SPAC will focus on acquiring companies in financial services and tech
HK Acquisition Corp, a blank-cheque company backed by the former head of Hong Kong’s de facto central bank, has its book fully covered for its HK$1 billion (US$127 million) initial public offering (IPO) on Monday, according to people close to the transaction.
Chan owns 51 per cent of the company. The other 49 per cent is co-owned by Katherine Tsang King-suen, former chairwoman of Standard Chartered Greater China and the younger sister of Donald Tsang, and investment firm Max Giant, which Katherine Tsang and her nephew Thomas Tsang Hing-shun co-founded. Thomas Tsang, the son of the former Hong Kong leader, is also Max Giant’s chief investment officer.
SPACs are shell companies that raise funds through a share sale to investors, then use the proceeds to buy assets within a limited period of time. The target or targets the SPAC is planning to buy remain unknown until it makes a formal announcement, which in Hong Kong should fall within 24 months of the SPAC’s listing date.
Failing this, the SPAC must liquidate and return the funds to investors. Investors are therefore relying heavily on the experience and track record of the promoters and their advisers to find attractive acquisition targets and deliver them a return.
