Synagistics set for Hong Kong listing through merger with SPAC backed by former HKMA head

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The deal values Synagistics, which provides digital commerce services, at HK$3.5 billion (US$448 million), according to an exchange filing

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A view of Exchange Square in Central, home of Hong Kong stock exchange operator Hong Kong Exchanges and Clearing, on April 2, 2024. Photo: Jelly Tse

Martin Choi

Published: 6:00am, 2 Jul 2024

Synagistics, a digital commerce service provider in Southeast Asia, is set for a listing in Hong Kong via a merger with a special-purpose acquisition company (SPAC) backed by the former head of Hong Kong’s de facto central bank.

The Singapore-headquartered company will merge with HK Acquisition Corp, a SPAC formed by Norman Chan Tak-lam, the former CEO of the Hong Kong Monetary Authority (HKMA), along with two family members of the city’s former chief executive Donald Tsang Yam-kuen, according to an exchange filing after the market close on Friday. The deal values Synagistics at HK$3.5 billion (US$448 million).

The agreement comes with a private investment in public equity (PIPE) with nine investors, including a fund managed by Oakwise Capital Management and a subsidiary of Hong Kong Telecommunications, according to the filing. The proceeds from the PIPE will be HK$601 million.

Haitong International Capital and CMB International Capital have been appointed as the joint sponsors of the deal.

Founded in 2014, Synagistics has provided integrated digital commerce solutions to more than 600 brand partners. It is backed by Alibaba Group Holding, which owns the South China Morning Post, and Gobi Partners, a leading Asia-focused venture capital firm.

It provides data-driven digital commerce solutions to the brands, and also sells their products to consumers directly.