FAST NEWS: SPAC with Alibaba Former CEO Ties Oversubscribed

The latest: Vision Deal HK Acquisition Corp. (7827.HK), the second listed special purpose acquisition company (SPAC) on the Hong Kong stock market, announced Thursday its offering of 100 million shares was slightly oversubscribed and will be listed on Friday.

Looking up: The investors participating in this subscription include 94 professional investors, of which 24 are institutional professional investors, who will hold 75.71% of the shares in the offer, respectively.

Take Note: The shares of this company will be offered only to professional and institutional investors, and the admission fee of HK$1.1 million (940,000 yuan) per lot will limit trading, resulting in a relatively low volume. For example, Aquila Acquisition Corporation (7836.HK), the first SPAC in Hong Kong, has not recorded any transactions for most of the trading days since its listing on March 18.

Digging Deeper: SPACs are publicly traded shell companies containing only cash, which can help real private companies list through reverse acquisitions. Their popularity as a “backdoor listing tool” in the U.S. has attracted attention of investors in Hong Kong and Singapore in recent years. Vision Deal HK Acquisition, co-established by David Wei, founder of Vision Knight Capital and also a former CEO of Alibaba (9988.HK, BABA.US), has set its sights on Chinese companies with expertise in supply chains and cross-border e-commerce in the smart vehicle sector. The company applied for listing on 15 February and was approved in just over two months, making it the second SPAC to be listed in Hong Kong.

Translation by Jony Ho

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