SparkLabs launches US-listed SPAC

Spark I Acquisition Corporation will likely focus on late-stage technology start-ups in Asia or on US-based companies that have a strong Asian presence or expansion strategy, according to a prospectus. Any target’s enterprise value will exceed USD 1bn. Companies primarily operating in Greater China will not be considered.

“We are especially interested in companies that have seen recent positive inflection points in their performance due to the adoption of disruptive strategies and business models driven by the changes in the global economy over the last few years during the pandemic,” the prospectus states, highlighting direct B2C consumer products companies and B2B operators that support these companies.

“We believe these impacts are driven by permanent changes in consumer behavior towards online, virtual and sharing economies. We believe these changes have been wide reaching in nature and successful companies are present in every horizontal and vertical sector.”

The SPAC’s sponsor entity is described as an affiliate of SparkLabs. James Rhee, a partner at SparkLabs, is CEO and chairman of the SPAC. The CFO and COO are also SparkLabs partners. Spark I Acquisition will take advantage of the firm’s ecosystem, including portfolio companies, when sourcing opportunities.

SparkLabs has flagship funds that invest globally and in Korea as well as dedicated funds operated in partnership with Korean corporates such as Shinhan Capital, SK Telecom, and L&P Cosmetics. Its accelerators focus on Korea, Taiwan, and Australia as well as on industries such as clean energy, financial technology, and blockchain.

The SPAC will sell 10m units priced 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 1.5m units.

The sponsor has committed to buy USD 8.5m in warrants. In addition, the sponsor and management subscribed to class B ordinary shares for a nominal sum that converted into an approximately 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 21 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 America
• North Asia
• IPO
• Technology
• SparkLabs Global
• SPAC
• TMT
• South Korea