Novo Tellus Alpha Acquisition, the spac backed by Novo Tellus Capital Partners, has enjoyed a 3.4 times subscription rate of its IPO.

Its local public offer of 500,000 units was about 7.6 times subscribed, while its international offering of 9.5 million units was about 3.1 times subscribed at the close of 12 noon on Jan 25.

The offering price of $5.00 per unit comprises one Class A ordinary share and 0.5 public warrant per unit. Each whole warrant entitles the unitholder to subscribe for one Class A share at the warrant exercise price of $5.75 per Class A share.

At the same time as but separate from the offering, 13 cornerstone Investors have subscribed for an aggregate of 16 million cornerstone units. The two largest cornerstone investors are Affin Hwang Asset Management and Venezio Investments, an indirect wholly-owned subsidiary of Temasek Holdings. The two have subscribed for a total of 4.3 million cornerstone units or 14.3% of the total units (excluding allotment option).

Novo Tellus, NTAA’s sponsor, has invested $20 million of its funds into NTAA and this represents over 10% of the total number of units and exceeds the 3.5% minimum equity participation requirement.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/ipo/biotech-startup-mirxes-weighs-us300-mil-singapore-ipo?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Biotech startup Mirxes weighs US$300 mil Singapore IPO</a>

The sponsor has also committed approximately $7 million of at-risk capital through the subscription for the founder shares and 14 million private placement warrants at 50 cents per warrant with a warrant exercise price of $5.75 per warrant.

In connection with the offering, the joint issue managers, joint global coordinators, joint bookrunners and joint underwriters have been granted an over-allotment option exercisable by Credit Suisse (Singapore) Limited as the stabilising manager to subscribe for up to an aggregate of 2 million units at the offering price.

In addition, the stabilising manager has over-allotted 2 million units, all of which have been allocated to the international offering. Such over-allotment will be covered through units to be borrowed by the stabilising manager from the sponsor, prior to the commencement of trading of the units on Singapore Exchange (SGX), pursuant to the unit lending agreement entered into between the stabilising manager and New Earth Group 2, acting in its capacity as general partner of the sponsor.

The stabilising manager will return an equivalent number of units to the sponsor, either through the purchase of units in the open market by undertaking stabilising actions and/or through the exercise of the over-allotment option.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/news/ipo/malaysias-carsome-said-delay-singapore-us-dual-listing?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Malaysia's Carsome is said to delay Singapore, US dual listing</a>

The gross proceeds raised of $150 million from the IPO will be placed in an escrow account to ensure that investors’ funds are directed towards the completion of NTAA’s business combination. Gross proceeds raised will be primarily used for the consummation of the initial business combination, the payment of deferred underwriting commissions, and payment to independent shareholders who have properly elected to redeem their Class A shares (if any) in connection with the successful completion of NTAA's initial business combination.

Units in NTAA are expected to commence trading on a “ready” basis at 9.00am on Jan 27.

Novo Tellus-backed spac's IPO 3.4 times subscribed

CEREIT assets benefitting from positive fundamentals in key office and logistics markets: PhillipCapital

CGS-CIMB notes positives for Excelpoint Technology with upcoming acquisition by WT Microelectronics

DBS suspends coverage of Bukit Sembawang Estates; keeps 'buy'

Businesses in Singapore eager to hire international talent with the rise of remote work

Putting consumer safety at the forefront of every retailer's agenda

Novo Tellus-backed spac's IPO 3.4 times subscribed

Related Stories

Highlights

China's shock Covid shift adds fuel to world-beating stock rally

Related Stories

Euda seeks Nasdaq listing via spac to gain better opportunities in healthcare market

Singapore's Kacific in talks for US$1 bil SPAC merger, sources say

Singapore's spacs have a magic shield