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SPAC backed by Chinese brokerage CMB International becomes first to file for Hong Kong listing, under new regime for blank-cheque companies

Tuesday, January 18, 2022

(SCMP by Georgina Lee) - A special purpose acquisition company (SPAC) sponsored by the asset management arm of Chinese brokerage CMB International has applied to float its shares in Hong Kong, becoming the first to test a new listing regime which became effective this month.

Acquila Acquisition Corp will offer shares at HK$10 each (US$1.28), it said in a heavily-redacted draft prospectus filed with the stock exchange on Monday.

Other terms such as the number of shares to be issued and the timetable of the offering were not visible. The minimum lot size on the day of listing will be at least HK$1 million.

Hong Kong is a latecomer to the SPAC frenzy, having only allowed them to list starting from this month.

Unlike other countries such as the US, UK, and Singapore, that allow retail investors to buy SPACs, it will only permit professional investors to buy and trade shares issued by the blank-cheque companies.

The city will only allow large SPACs that raise at least HK$1 billion (US$128 million) to list on its main board, the highest requirement among all exchanges.

Aquila Acquisition Corp is looking to raise funds to buy companies in the “new economy sector”.


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