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Prenetics becomes first Hong Kong unicorn to go public
Covid-19 testing company seeks Nasdaq listing via merger with SPAC Artisan Acquisition
Darryl Yu 16 Sep 2021

The SPAC (special purpose acquisition company) excitement in Asia continues to gather pace following the announcement that Hong Kong-based Covid-19 testing company Prenetics is merging with Nasdaq-listed SPAC Artisan Acquisition Corporation.

The merger between Prenetics and Artisan Acquisition Corporation, backed by Hong Kong property tycoon Adrian Cheng of New World Development, has a combined value of US$1.7 billion. Reported financial advisers for the transaction include CICC, Citi, Credit Suisse and UBS.

Founded in 2014, Prenetics provides genomic and diagnostic testing services primarily in Hong Kong and the United Kingdom. Some of the company’s key clients are the Hong Kong government, London Heathrow Airport and Virgin Atlantic. 

Artisan Acquisition Corporation, listed on the Nasdaq under the ticker ARTAU, is the latest SPAC to grab headlines in Asia. Singapore-based Grab, Southeast Asia’s largest ride-hailing app, announced this summer that it would aim to complete its merger, worth US$40 billion, with Nasdaq-listed SPAC Altimeter Growth Corp.

Jakarta-based online travel agent Traveloka said it would be raising between US$200 million and US$400 million from investors in preparation for its merger with Bridgetown Holdings, a SPAC set up by billionaires Richard Li and Peter Thiel. 

Interest in SPACs have taken off this year, with initial public offerings (413 deals) and funds raised (US$121.8 billion) as of August 2021 surpassing the total for the whole of last year. A SPAC, otherwise known as a blank-cheque company, is a shell corporation listed on a stock exchange with the purpose of acquiring a private company that may not want to go through the traditional route of being listed via an initial public offering.

Unlike in the IPO process, a company that merges with SPACs generally needs to provide investors with projected financial performance figures instead of historical profits.

In an attempt to attract SPAC listings in Asia, the Singapore Exchange recently issued new rules to enable SPACs to list on its mainboard, making it the first major bourse in the region to open its doors to such investment vehicles following a public consultation exercise in April 2021.

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