Is the SPAC Boom Over? Deals in Singapore and Hong Kong Appear to be Fizzling Out
Excerpt: Chinese unicorns — or start-ups with at least $1 billion in valuation — are running out of private capital to tap on, and that could drive them to seek SPAC listings in Hong Kong, according to Drew Bernstein, co-founder and chairman at audit advisory firm MBP.
“There are over 300 China-based unicorns, some of which are exceeding the capacity of private capital sources,” Bernstein told CNBC. “In my experience, if you are able to offer a Chinese CEO a straightforward, fast path to raising capital, there will be no shortage of takers.”
“A Hong Kong SPAC merger may be an attractive option for mainland China companies that are seeking access to capital and liquidity convertible into dollars but are concerned about the accounting and regulatory uncertainties involved in a U.S. listing right now,” he added.