Hong Kong's luxury Rosewood Hotel Group, which is a unit of property developer New World Development, is planning to file for a special purpose acquisition company (SPAC) listing, three people with knowledge of the matter have said, adding to the recent rush for such deals.
Rosewood, which is run by Sonia Cheng, the granddaughter of family-run NWD founder Yu-tung Cheng, has enlisted Credit Suisse and JPMorgan to lead the US SPAC listing, which targets the consumer sector, two of the people told Reuters.
Typically, a SPAC, a blank-cheque company that raises money through initial public offerings (IPOs) and merges with firms by enticing them with shorter listing timelines, will issue shares at $10 apiece.
One of the sources said that Rosewood's SPAC listing could aim to raise approximately $400 million.
The hotel group, which manages one of Hong Kong's most prominent hotels located in the city's Victoria Harbour in the tourist district of Tsim Sha Tsui, did not immediately respond to a query from Reuters for comment. Credit Suisse and JPMorgan declined to comment.
The sources declined to be named as the information is confidential.
Rosewood's SPAC deal, if it materialises, will join a growing list of such transactions involving Asian issuers, who are lured by the SPAC IPO's easier execution and lucrative returns once the SPACs merge with target companies.
Adrian Cheng, Sonia's brother and chief executive of NWD, is separately in talks with banks about a SPAC listing, the people said. Bloomberg reported this week that he's aiming to raise $400 million.
The NWD family office did not immediately respond to a query from Reuters for comment.
Property tycoon Li Ka-shing has also tapped advisers for a SPAC listing via his family office, other people said.
Li's investment vehicle Horizons Ventures denied that they are working on a SPAC. His foundation did not immediately reply to a request from Reuters for comment.
Li's son, Richard Li, set up two SPACs last year with US venture capitalist Peter Thiel.
Funds Raised Via SPAC IPOs By End-February
Funds raised via SPAC IPOs reached $60 billion by end-February, Dealogic data showed, already more than 70% of 2020's annual deal value.
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