Wellous, a Malaysia-based health food and nutrition company, will go public in the US following a merger with Nasdaq-listed special purpose acquisition company (SPAC) Kairous Acquisition Corp.
The merged entity will be called Wellous Group Holdings Ltd. and its ordinary shares will be listed on Nasdaq, according to an announcement on Wednesday.
According to the agreement, the merger consideration is $270 million, which is payable by newly issued securities of the combined company valued at $10.10 per share.
The merger deal will have cash proceeds, which will come from Kairous’s approximately $21 million trust. The SPAC raised $75 million by offering 7.5 million units at $10 each last year.
The blank cheque company is led by Joseph Lee, founder and managing partner of Malaysia-based Kairous Capital.
Kairous Capital, launched in 2015, is a venture capital firm with a hybrid model as it has some PE elements such as its involvement in the post-investment value creation of the startup. About 60% of its portfolio is in China, the remaining is in Southeast Asia.
“Wellous is a testament to the global investor community that Southeast Asia companies are capable of being profitable while maintaining high growth,” Lee said.
The Wellous management team, led by its co-founders Andy Tan and Henry Chin, will continue to run the combined company after the closing of the proposed transaction.
Tan said Wellous sees a vast addressable market, totalling approximately $700 billion annually by 2027, due to increased demand for food and supplements.
“Wellous strives to bring its high quality, innovative and tailored health products across the world, and we are targeting future expansion opportunities in markets which go beyond Southeast Asia,” Tan said.
The boards of directors of both Wellous and Kairous have unanimously approved the proposed merger, which is expected to be completed in mid–2023
Founded in 2016, Wellous develops, manufactures, markets, and distributes health and wellness products. The company’s operations are based in Malaysia, with a strong presence in the Asia-Pacific markets including Malaysia, Singapore, and Hong Kong.