PineBridge, Peter Thiel launch Southeast Asia-focused SPAC

Thiel (pictured) is sponsoring the structure through Thiel Capital, an investment firm he established in 2011. PineBridge, which has $104.4 billion under management in private assets globally, is a subsidiary of Pacific Century, a company controlled by Richard Li, son of Hong Kong billionaire Li Ka-shing. Its portfolio also includes Hong Kong’s PCCW and HKT and Asia-focused insurer FWD.

The SPAC, Bridgetown Holdings, is looking to raise $500 million through the sale of 50 million units for $10 apiece, according to a filing. Each unit comprises one class A ordinary share and one-half of one redeemable warrant. Each whole warrant can be converted into a class A ordinary share at a price of $11.50 per share. There is an overallotment option of up to 7.5 million units.

The sponsor and management have subscribed to class B shares for a nominal sum that will convert into a 20% stake in the entity on completion of the offering. The sponsor has also agreed to pay $9 million for nine million warrants. Moreover, affiliates of the sponsor are expected to invest up to $200 million in the offering, including $50 million from FWD.

The SPAC will focus on technology, financial services, and media assets in Southeast Asia. The filing references an estimate by Google, Temasek Holdings, and Bain & Company that the region’s internet economy surpassed $100 billion in 2019 and is likely to hit $300 billion by 2025. It is projected there will be 310 million digital consumers in Southeast Asia by the end of this year – or 70% of all consumers. There are 360 million internet users in the region, 90% of whom connect via mobile.

Regarding financial services, the filing cites the Asian Development Bank’s work on untapped demand for electronic payments and formal savings accounts in Indonesia, the Philippines, Cambodia, and Myanmar at $180 billion. It also highlights the mid to late-stage funding gap for consumer internet start-ups in Southeast Asia, suggesting this offers opportunities for the SPAC.

Once the SPAC identifies a target, a majority of investors must vote in favor of the transaction. On completion, they can exercise their warrants and purchase shares or redeem some or all their shares for cash. If there is no deal within 24 months of the offering, investors will get their money back.

Various Asia-based private equity executives have listed SPACs on US bourses as interest in these structures continues to rise globally. Only three in Asia have been sponsored by GPs: New Frontier Group used a SPAC to buy Chinese hospital operator United Family Healthcare from TPG Capital; CITIC Capital launched a structure to pursue opportunities tied to the Belt & Road Initiative; and Korea’s ACE Equity Partners is using a SPAC for IT infrastructure deals.

Other recent Asia-related SPAC fundraises include $115 million for PTK Acquisition Corp, a vehicle launched by Peter Kuo, a co-founding partner at Canyon Bridge Capital Partners, which acquires global technology assets with a view to supporting China expansion; $125 million for Malacca Straits Acquisition, a SPAC backed by Hong Kong hedge fund Argyle Street Management; and $225 million for Aspirational Consumer Lifestyle Corp, launched by Ravi Thakran, formerly head of L Catterton’s Asia operation.

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• Topics
• Southeast Asia
• Fundraising
• IPO
• Technology
• Financials
• PineBridge Investments
• TMT
• SPAC