Dear readers, Singapore stocks markets had at least something exciting for a long while as Singapore welcomes the debut of the first two SPACs on Singapore stocks exchange this week: Vertex SPAC and Pegasus SPAC. Indeed, the debut of SPACs on our homegrown stock exchange is really a significant milestone for the local stock markets which has become quite lacklustre for a long while. The listing of the SPACs on SGX this week to me was as significant as the listing of Reits on SGX some years back.
Both Vertex SPAC and Pegasus SPAC were priced at $5 per unit and they closed for the first week of their trading at $5.05 (for Vertex SPAC) and $5.02 (for Pegasus SPAC). I think investors who bought the two SPACS on their public tranche offering hoping to make some quick and nice profits by selling immediately after the debut of the two SPACs will be left disappointed as these two SPACS closed at just 0.4% and 1% above their public offer price (of $5 per unit). I would term these investors as speculators instead, similar to those speculators of IPOs.
I would think going forward, the performance of SPACs including Vertex and Pegasus will be sustained by institutional interest as I am of the view that local investors will not be too patient in stocks without a proven track record yet. Hence, for investors hoping to do well in these SPACs, a long-term view is necessary.
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