Black Spade Acquisition II, a Hong Kong-based special purpose acquisition company (SPAC), has officially filed to raise up to $150 million in an initial public offering in the US.
The blank cheque firm plans to offer 15 million units at $10 apiece, with each unit consisting of one Class A ordinary share and one-third of one redeemable warrant.
Black Spade Acquisition II said while it may pursue a business combination with any industry, it believes that the entertainment, lifestyle, and technology industries, particularly those that are major beneficiaries of AI, provide ample business opportunities.
“We plan to also look at companies that are involved in the provision of AI biotechnology or AI infrastructure and services,” the blank cheque company said.
The SPAC said it may look at a company doing business in Greater China, although its search for target businesses could be global.
“Our sponsor and our executive officers are based in Hong Kong, and our founder and executive officers have experience investing in and building businesses in the Asia-Pacific region and have a deep understanding of the region’s business environment, regulations, regulatory bodies, and culture,” the company stated.
Black Spade Acquisition II said that its sponsor, Black Spade Sponsor LLC II, has committed to purchase up to 11 million warrants in a private placement. It plans to list on the Nasdaq under the symbol “BSIIU”.
The blank cheque company is led by co-CEO and chairman Dennis Tam, the CEO of Black Space Capital; co-CEO, CFO, and Director Kester Ng, the CEO of GRE Investment Advisors; and co-CEO, COO, and Director Richard Taylor, who previously served as managing director at GRE.
The previous SPAC, Black Spade Acquisition, agreed to merge with Vietnamese automobile manufacturer VinFast last year. The deal valued VinFast at an enterprise value of about $27 billion and an equity value of $23 billion.
A SPAC is a company that raises money through an IPO to merge with another firm, allowing the latter to list more quickly. It typically acquires a firm as quickly as four to five months and is given up to two years to seek targets, or it will have to return all the money to public shareholders.
According to EY’s Global IPO Trends 2023, SPACs continued to retreat in 2023, with 29 SPAC IPOs raising $3.7 billion last year against 86 SPAC IPOs that raised $13.4 billion in 2022. EY said more than 140 active SPACs are seeking a merger partner and 132 SPACs have announced mergers in 2023.
Early this month, Asia-focused blank cheque company Chenghe Acquisition II raised $75 million in its US IPO, while China’s Rising Dragon Acquisition has filed to raise $50 million.