SPAC Weekly Report | SPAC initiated by Dongjian Asset Management submits forms to the Hong Kong Stock Exchange

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Author | Uncle C

The SPAC initiated by Norman Chan, the former Chief Executive of the Hong Kong Monetary Authority, submitted a statement to the Hong Kong Stock Exchange

On March 1, HK Acquisition Corporation, a special purpose acquisition company (SPAC) initiated by Hong Kong Huide Acquisition Company, submitted a listing application to the main board of the Hong Kong Stock Exchange. Haitong International was the sole sponsor.

It is worth mentioning that the sponsor behind this eighth SPAC company is Delin Chen, the former president of the Hong Kong Financial Services Authority.

Norman Chan was the Chief Executive of the Hong Kong Monetary Authority (HKMA) from October 2009 to September 2019. After helping to establish the HKMA in 1993, she personally guided and directed the HKSAR Government's securities market operations during the Asian financial crisis in August 1998. In 1999, Norman Chan initiated the initial public sale of Hong Kong Yingfu Fund on the main board of the Stock Exchange.

According to the listing application, the sponsors are Chen Delin, Zeng Jingxuan, and Ju Yi. All sponsor shares will be held by Hong Kong Huide Limited. Hong Kong Huide Limited is 51% owned by Extra Shine (wholly-owned by Norman Chan), 32% by Pride Vision (wholly-owned by Tsang Jingxuan), and 17% by Juyi (a licensed entity fully accredited by the Securities Regulatory Commission holding a Type 9 license, or Asset Management and Class 4 license (providing advice on securities)).

HK Acquisition Corporation intends to focus on financial services or technology companies that have a competitive advantage in sustainability and corporate governance and operate or are expected to operate in Greater China

SPAC initiated by Dongjian Asset Management submitted a statement to the Hong Kong Stock Exchange

On March 2, Pisces Acquisition Corporation, a special purpose acquisition company (SPAC) initiated by Dongjian Asset Management, a subsidiary of Dongjian International, officially submitted an A1 document to the Hong Kong Stock Exchange, and CMB International acted as the sole sponsor.

Dongjian Asset Management is mainly engaged in asset management and investment consulting services, focusing on private equity investments, fixed income and related derivatives, secondary market equity investments, and other investments. As of December 31, 2021, Dongjian Asset Management managed 18 funds, with a maximum size of US$557 million per fund.

Pisces Acquisition Corporation stated that its plans focus on companies in high-growth “new economy” industries, such as big health, new energy, new economy consumer and retail, and advanced technology.

Among them, Jiao Zhen, who is the chairman of Pisces Acquisition Corporation, is the co-founder and president of Dinghui Investment. As of September 30, 2021, the total assets managed by Dinghui Investment exceeded US$27 billion.

In addition to Jiao Zhen, Wu Guangze, who is the CEO of Pisces Acquisition Corporation, has been the CEO of Dongjian International since December 2020, and was reassigned as the executive director and CEO of Dongjian International in March 2021.

Pisces Acquisition Corporation emphasized that its executive directors and non-executive directors have a total of over 50 years of comprehensive investment experience and have rich experience in exploration, acquisition, nurturing and exit.

Geely's Yigatong Technology is considering listing through SPAC

On March 2, Yikatong Technology, a strategic investment of Geely Holding Group, is currently considering listing in the US through a merger with SPAC. People familiar with the matter said that Yikatong has already had relevant discussions with the consulting company. If the transaction is completed, the overall valuation of the merged Yikatong will be around 4 billion US dollars, equivalent to RMB 25.3 billion.

This $4 billion valuation largely refers to the A+ round of financing completed in February 2021. In this round of financing, Yikatong raised a total of 200 million US dollars. After the A+ round of financing was completed, the overall valuation of Yikatong by the outside world has already exceeded 2 billion US dollars.

Established in 2016, Yigatong Technology is an intelligent automotive technology company, co-founded by Li Shufu and Shen Ziyu, focusing on core technology products such as in-vehicle chips, smart cockpits, and cloud platforms for connected vehicles. In 2018, Yigatong Technology, Arm China and many well-known investment institutions invested in the establishment of Hubei Xinjing Technology Co., Ltd. in Wuhan to specialize in automotive-grade SoCs.

In September 2021, under the lead investment of Geely Automobile, Yikatong completed Series B financing of 50 million US dollars. As a result, Geely Automobile obtained 1.5% of Yikatong's shares. In addition to Geely Auto, Yikatong's shareholders include Baidu, Changjiang Industrial Fund, Geely Holdings, and China State-owned Capital Venture Capital Fund.

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