De-SPAC surges 70pc on debut

Staff reporter

E-commerce solutions provider Synagistics (2562) surged 70 percent above its offer price on its trading debut yesterday, following its merger with special-purpose acquisition company HK Acquisition Corporation.

The Singapore-based firm's listing marks the first de-SPAC transaction in Hong Kong since the city introduced SPAC listing rules in 2022.

A de-SPAC occurs when a private company goes public by merging with a SPAC -- an investment vehicle that raises capital through an initial public offering with the intention of acquiring a private firm.

Synagistics rose to HK$50.05 at one point, about five times its offer price of HK$10, before closing at HK$17.

In Hong Kong, SPACs must raise at least HK$1 billion and are required to identify a merger target within 18 to 24 months and complete the acquisition in 36 months.

Backed by former Hong Kong Monetary Authority head Norman Chan Tak-lam, HK Acquisition Corporation raised HK$1 billion in August 2022.

Synagistics operates the Synagie Platform, a data-driven digital solutions platform in Southeast Asia.

Hong Kong Exchanges and Clearing (0388) chairman Carlson Tong Ka-shing said Synagistics' listing represents a new milestone for Hong Kong.

Separately, China's automotive specialty chemical manufacturer Jiangsu Lopal Tech (2465) fell 13.6 percent on its trading debut yesterday.