Dear readers, Novo Tellus SPAC, the third SPAC, right after Vertex Tech SPAC and Pegasus SPAC, made its debut on the Singapore Stocks Exchange today. Listed at $5 per share, Novo Tellus closed 2.8% lower today at $4.86 per unit. Based on the debut performance of the aforementioned three recent SPACs, Novo Tellus’ debut performance was the worst since the other two SPACs still managed to close higher (than their IPO price) on the first day of their trading.
As at today, both Vertex Tech SPAC and Pegasus SPAC closed no higher than their IPO price of $5 each: $4.99 (Vertex Tech SPAC) and $5 (Pegasus SPAC). Singapore-based Grab which listed on the US stock exchange via a SPAC similarly closed yesterday at US $5.94 lower than the US$11 per unit price of Altimeter stock (a day before Grab made its debut).
So, what’s next for Singapore SPACs? I would think for the period leading up to the de-SPAC of the three SPACs, there is no real catalyst to drive SPACs price forward. The prices of SPACs are likely to go lower amidst the current volatile stock market backdrop.
SPACs are blank-cheque companies with no businesses to speak of yet. I already don’t invest in businesses that I don’t understand, hence it is clear that I have no interest in SPACs at all.
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