Singapore’s Spacs has rocky start; which raises many concerns

(MENAFN) The first two blank-cheque enterprises to register in Singapore had a disappointing market launch, sparking worries about whether the enthusiasm for such vehicles that happened in the United States; in the beginning of last year will be matched in Asia.

Vertex Technology Acquisition, financed by a division of government investor Temasek, soared in opening trade on Thursday, but by the end of the day, it was only up by 1 percent ahead than its bidding price. Pegasus Asia, which is financed by Tikehau Capital SCA, increased by 0.4 percent on Friday, which was it first day of trade.

The two Spacs, or special purpose acquisition companies, have had a slow performance in the face of an international equity selloff. On Thursday, the technology-centered Nasdaq 100 fell into a slump due to concerns about increasing costs and possible Federal Reserve rate surges. Moreover, the performance of Spacs is often connected to the performance of tech stocks.

MENAFN23012022000045012476ID1103579636