The HKEx ushered in a second SPAC, co-sponsored by BABA's former CEO Wei Zhe and Feng Lin, focusing on smart cars and new consumer company VISION DEAL-Z (07827.HK) officially listed on the Hong Kong Stock Exchange yesterday, with Citi and Haitong International as co-sponsors, joint global co-ordinators and joint bookrunners.
When Wei Zhe and Feng Lin accepted an exclusive interview with CapitalWatch, in order to make it easier for the public to understand, they interestingly described that the SPAC launched this time was actually a bit like a "send blind box" in American department stores. Now they buy a big blind box and send a small blind box, that is, they give one share warrant for every two shares, and they can return goods. There is a redemption mechanism for dissatisfaction with the stock price performance in the future, and the warrants sent out are given away for nothing. Of course, they believe that investors have a better chance to continue to hold because it is of high quality.
Wei Zhe told CapitalWatch that they are the second SPAC listed in Hong Kong, and there will be more projects to be listed in the future. SPAC shares generally have three characteristics. The first stage is mainly subscribed by professional investment institutions, so it is difficult for retail investors to enter the market, so the stock price is also very stable at this time. After that, retail investors will only enter the market after a certain amount of transactions are in circulation, so at this stage, they have only gone 1/3. In the final stage, more people have made money through this investment, and only then will they be fully market-oriented. At present, half of the IPO listings in the United States are in the form of SPAC. It is hoped that in Hong Kong in three years' time, like the United States, half of the IPO will be in the form of SPAC.
In the past, their interests have focused on high-tech smart car technology, or companies such as owning supply chains and cross-border e-commerce. In the future, they may focus not only on smart cars, but also on more technology companies.
Wei Zhe, the group's chairman and executive director, said the group aims to complete mergers and acquisitions within 18 months, earlier than the 24 months set by the Hong Kong Stock Exchange. At present, the Group already has a group of potential M & A targets, all of which have consulted Jiayu Capital, have a certain degree of familiarity with them, and will look for suitable targets in the light of past M & An experience. He revealed that he plans to launch more SPAC in Hong Kong in the future and has long-term cooperation with the current team.
Recently, there are challenges in Hong Kong's capital market, which have dragged down the number of new shares and the amount of capital raised. Under the influence of market conditions, many new shares have chosen to delay listing, but they are bringing many high-quality M & A targets to SPAC. Wei Zhe described it as the "best time" for the Hong Kong SPAC market. He also pointed out that although there was too much SPAC in the United States market and there was a large demand for mergers and acquisitions, he thought that the markets of Hong Kong and the United States would not compete with each other, and the threshold of the Hong Kong market was high, targeting more mature companies, and most of the SPAC listed in the United States were targeted at American companies.