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Hony Capital-backed SPAC looks to raise $300 mln in U.S. IPO

March 24 (Reuters) - A blank-check firm backed by Hony Capital, which has investments in TikTok owner ByteDance and WeWork’s China unit, is aiming to raise $300 million in an U.S. initial public offering, according to a regulatory filing on Wednesday.

Hony Capital Acquisition Corp, the special purpose acquisition company (SPAC), will sell 300 million units, made up of shares and warrants, at $10 apiece.

A SPAC is a shell firm that raises money in an IPO before merging with a privately held company to take the latter public. The new trend is set to take hold in Asia with more than a dozen SPACs on the hunt for fast-growing technology firms that are ready to go public. reut.rs/3suoao6

Hong Kong tycoon Richard Li, venture capitalist Peter Thiel, Chinese buyout firm CITIC Capital, Singapore-based healthcare entrepreneur David Sin and former hedge fund manager George Raymond Zage are among a growing list of backers of SPACs.

The SPAC backed by Hony Capital, one of China’s biggest private-equity firms, will look to merge with technology-enabled companies that have a significant presence in China, mainly in sectors such as healthcare and consumer products, according to the filing.

Citigroup and Credit Suisse are underwriters on the offering. bit.ly/2Qum2Pf

The SPAC will list its units on the New York Stock Exchange under the symbol “HCAA.U”. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shailesh Kuber)

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