BENGALURU – Grand Centrex Limited (GCL) said on Wednesday that it will list in the US by merging with a blank-cheque firm in a deal that values the Singapore-based video game distributor at US$1.2 billion (S$1.65 billion).
Special purpose acquisition companies (Spacs) have largely fallen out of favour following a bumper 2020, after they drew intense scrutiny from the United States Securities and Exchange Commission.
The poor stock performance of some companies that went public via a Spac merger have also dimmed the appeal of such vehicles.
The deal with RF Acquisition Corp could fetch US$42.9 million in proceeds for GCL, it said. The companies will also seek alternative financing of up to US$20 million.
A Spac, also called a blank-cheque firm, uses proceeds from its initial public offering (IPO) to merge with a private firm.
Such mergers can let a private firm sidestep a lengthy IPO process to list its shares on bourses. REUTERS
https://www.straitstimes.com/business/singapore-based-video-game-distributor-gcl-seeks-us-listing-via-165-billion-spac-deal
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