Korean GP Credian sponsors $200m US SPAC offering

Valuence Merger Corp. I is said to be the first Korean-sponsored SPAC to trade on NASDAQ. It will pursue merger targets in Asia – excluding Greater China – that are involved in life sciences or sustainability-related technologies, according to a filing.

The sponsor entity is controlled by Credian, which is in turn controlled by Sung Yoon Woo, its founder and CEO, and three other managing partners. They are Andrew Hyung, formerly of Nomura Greentech, a sustainability-focused investment bank; Sungsik Lee, who previously worked on cross-border M&A at SK Group; and Gene Young Cho, a director of a US subsidiary of CrystalGenomics.

Credian was established in 2014 by Woo, who previously worked for Russel Investments and led the PE team at Mirae Asset Global Investments. The firm is arguably best known for participating in a carve-out of MagnaChip Semiconductor’s foundry services group in 2020. It has made other investments across flat-screen displays, biotech, and premium foods, usually on a project fund basis.

CrystalBioSciences was set up in 2019 and focuses on technologies that help address unmet needs in healthcare. It has invested in protein engineering for cartilage regeneration, novel targets for cell therapies, medical devices, and artificial intelligence-driven health technologies.

Quantum Leaps, a Japan-based consulting firm, will assist Valuence Merger Corp. I in identifying and performing due diligence on targets.

The SPAC sold 20m units at USD 10 apiece. Each unit comprises one class A ordinary share and one-half of one redeemable warrant. Each whole warrant can be converted into a common share at a price of USD 11.50 per share. There is an overallotment option of 3m units.

The sponsor bought USD 10m in warrants. In addition, the sponsor and management subscribed to common shares for a nominal sum that converted into a 20% stake in the listed entity.

Once a target is identified, a majority of investors must vote in favour 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 15 months of the offering – although there is an option for two extensions, each of three months – investors get their money back.

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• Topics
• North Asia
• IPO
• Healthcare
• Technology
• SPAC
• South Korea