CDH CEO leads Hong Kong SPAC

The sponsor entity of Pisces Acquisition Corporation is controlled by OCI Asset Management, a subsidiary of Hong Kong-listed OCI International Holdings. CDH is the largest individual shareholder in OCI International, ahead of Orient Securities and CCB International. The company is involved in direct equity investments and private equity fund management.

Jiao – who is also known as Jiao Zhen – is also chairman of OCI International. The SPAC prospectus makes extensive references to his investment track record at CDH. Other members of the SPAC management team are drawn from OCI International, including Guangze Wu, the company’s CEO. Wu is also a managing partner of China Consumer Capital Partners.

Pisces Acquisition will pursue merger targets in high-growth new economy segments such as healthcare and life sciences, green energy, disruptive consumer and retail models, and advanced technology. Businesses will have operations in Asia Pacific with a focus on Greater China, leveraging the networks and resources of the management team.

OCI International’s operations span cross-border M&A, private equity and fixed income investment, and listed securities research and investment. It is also involved in wine trading. Assets under management (AUM) were USD 824m as of December 2020, up from USD 662m in 2018.

The size and pricing of the offering have yet to be finalised, but the structure is in line with those seen in the US: units comprising ordinary shares and convertible warrants; investors holding the right to convert once the SPAC consolidates a merger or cash out; a separate class of shares issued to the founders for a nominal sum; and founder participation in the offering through warrants.

A merger must be announced within 24 months of the offering and consolidated 12 months after that, or investors can claim their money back.

Hong Kong and Singapore have both launched SPAC regimes as they seek to stem the flow of Asian technology companies listing via this route in the US. Singapore moved faster, with SPACs sponsored by the likes of Vertex Venture Holdings and Novo Tellus Capital Partners already trading. Other private equity sponsors of SPACs filing in Hong Kong include LionRock Capital.

CDH has USD 21bn in AUM across private equity, growth capital, mezzanine, real estate, public equity, and wealth management strategies.

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• Topics
• Greater China
• IPO
• Hong Kong (China)
• SPAC
• CDH Investments Management