Singapore’s Synagistics: Hong Kong’s first de-SPAC listing a milestone for stock exchange

Hong Kong’s listing reform marks a historic milestone this week as an overseas company becomes the first to list here via a merger with a blank-cheque company.

Singapore-based Synagistics, an e-commerce solutions provider, starts trading on the Hong Kong stock exchange under the 2562 stock code on Wednesday after combining its business with Hong Kong Acquisition Corporation, a special-purpose acquisition company (SPAC).

Synagistics’ listing is the first “de-SPAC” since Hong Kong Exchanges and Clearing introduced the SPAC listing rules in January 2022 to catch up with the US and Singapore, which had introduced regulations to boost such listings.

“The listing of Synagistics via a successful de-SPAC transaction is a milestone for Hong Kong to introduce a new way for a company to go public other than normal initial public offerings (IPOs),” said Norman Chan Tak-lam, chairman of Hong Kong Acquisition. “This will strengthen Hong Kong’s role as a listing venue and international financial centre.”

Hong Kong tycoons are no strangers to SPACs and de-SPAC transactions. Still, most of their vehicles have chosen to raise capital overseas and conduct merger deals. Artisan Acquisition, a Nasdaq-listed SPAC backed by Adrian Cheng Chi-kong, the former CEO of New World Development, merged with Hong Kong genetics testing company Prenetics in 2021. Similar deals have also been conducted by tycoons, including Richard Li Tzar-kai and Lawrence Ho Yau-long, the chairman of Melco Resorts & Entertainment.

Chan’s SPAC, which raised HK$1 billion (US$128 million) in August 2022, will now become the first to complete a deal to allow another firm to list in Hong Kong. The former CEO of Hong Kong Monetary Authority has focused on the fintech business since retiring in October 2019.