SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Vertex Technology Acquisition Corporation / Equity Bottom-Up

Vertex Technology Acquisition Corporation

SPAC Unit Detachment FAQs
Visit <a href="http://www.sgx.com/SPACs" target="_blank" rel="noopener">www.sgx.com/SPACs</a> for more product information on SPACs.
<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2022-02/SPAC.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">SPAC</div>

What is a SPAC detachment (i.e. units separate/split) event? SPAC detachment is an event that occurs typically on the 45th calendar day from listing date. The detachment date (D date) is when SPAC units separate into individually traded SPAC shares and warrants. (Note: A SPAC unit comprises of one share and a fractional warrant). The last day of trading for SPAC units is one business day prior to detachment (D – 1). Unitholders’ who sell their SPAC units on (D – 1) will not be eligible to receive SPAC shares and warrants. Trading in the SPAC shares and warrants will begin on D date. Unitholders’ accounts will be credited with SPAC shares and warrants two business days after the detachment date (D + 2). Do note that the stock codes for the SPAC share and SPAC warrant may be different from that of the SPAC unit. <a target="_blank">Similar to other corporate actions like right issues, investors should trade only if they are aware of the quantity of SPAC shares and SPAC warrants they have been allocated. </a> The three SPACs currently listed on SGX (as at 28 February 2022) will automatically detach on D date into shares and warrants. Other future SPACs, if any, may offer optional detachment. Detachment dates for different SPACs can vary and investors are advised to look out for the SPAC’s announcement on SGXNet and/or in its prospectus. When will the SPAC units separate/split? The detachment date (D date) typically falls on the 45th calendar day from the listing date. If the 45th calendar day falls on a weekend or public holiday, detachment will be on the next business day.
<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2022-02/SPACs.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">Spacs information</div>

How many shares and warrants will I get for every 1 SPAC unit I own after detachment (D date)? A SPAC unit comprises a SPAC share and a fractional SPAC warrant (e.g. 0.5 of a warrant). The fraction of a warrant that comes with one unit of a SPAC may differ from the fraction of a warrant for another SPAC unit. See the relevant prospectus for more information.
<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2022-02/spac%201.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">SPAC shares and SPAC unit</div>
<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2022-02/spac%202.PNG" class="editor-image img-responsive"></figure>
<div class="content-caption">SPAC holdings</div>

What happens with fractional warrants that cannot be combined after detachment date (D date)? After detachment, fractional warrants which cannot be combined into whole warrants will be disregarded. Only whole warrants can be traded. If you want to hold whole warrants, you must hold enough SPAC units that upon detachment, will result in whole warrants being issued.&nbsp; Example (Pegasus Asia SPAC) Scenario 1
<ul>
<li>Investor holds 100 Pegasus SPAC units</li>
<li>1 Pegasus SPAC unit (PGU) comprises a SPAC share and 0.5 of a warrant</li>
<li>An investor must ensure they hold enough units to form whole warrants:
<ul>
<li>100 SPAC units (PGU) = 100 SPAC shares (PGS) + 50 warrants (PGEW W291231)</li>
</ul>
</li>
<li>On detachment date, SPAC units (PGU) will separate into shares (PGS) and warrants (PGEW W291231)</li>
<li>The 100 SPAC units will be debited from the unitholder’s securities account</li>
<li>Investor will now own:
<ul>
<li>100 SPAC shares (PGU) and 50 warrants (PGEW W291231)</li>
<li>Crediting of SPAC shares and warrants into securities account 2 business days post detachment</li>
</ul>
</li>
</ul>
&nbsp;
Scenario 2 
<ul>
<li>Investor holds 51 Pegasus SPAC units</li>
<li>1 Pegasus SPAC unit (PGU) comprises a SPAC share and 0.5 of a warrant</li>
<li>A investor does not hold enough units to form whole warrants:
<ul>
<li>51 SPAC units (PGU) = 51 SPAC shares (PGS) + 25.5 warrants (PGEW W291231)</li>
</ul>
</li>
<li>On detachment date, SPAC units (PGU) will separate into shares (PGS) and warrants (PGEW W291231)</li>
<li>Fractional warrants of 0.5 warrant an investor holds will be disregarded</li>
<li>The 51 SPAC units will be debited from the unitholder’s securities account</li>
<li>Investor will now own:
<ul>
<li>51 SPAC shares (PGU) and 25 warrants (PGEW W291231)</li>
<li>Crediting of SPAC shares and warrants into securities account 2 business days post detachment</li>
</ul>
</li>
</ul>
&nbsp;
What is the board lot size for trading of Shares and Warrants? The shares will be traded in board lot of 100 and warrants will be traded in board lot size of 1. Where can I check how many shares and warrants I have? Before the crediting date (D + 2), unitholders will still see their SPAC units in their CDP account holdings. Two business days post detachment date, unitholders will see SPAC shares and warrants credited in their account, and SPAC units debited from the account. An investor can log on to the SGX Investor Portal to review the CDP account statements to check for the number of shares and warrants credited by 9am on the crediting day (D+2). Do check with your broker and/or financial advisor if you require more information. I’m worried about trading the wrong quantity of shares and warrants. What can I do? Similar to other corporate actions, investors should trade only if they are aware of the quantity of SPAC shares and SPAC warrants they have been allocated. Do check with your broker and/or financial advisor if you require more information. Can I still trade SPAC units on detachment date? If I cannot trade SPAC units from detachment date onwards, what can I trade? The last day of trading for SPAC units is one business day prior to detachment (D – 1). For SPACs with automatic detachment (note that units for the existing 3 SPACs listed on SGX automatically detach), only SPAC shares and warrants can be traded from detachment date (D). What happens if I mistakenly trade more SPAC shares/warrants than I have after separation/split? This may cause a potential short sell scenario. In the event of a short sell on settlement date, CDP conducts a buy-in procedure to buy back shares in the buy-in market for settlement the next day. For more information on the buying-in process, please see “Settlement Process” here: <a href="https://www.sgx.com/securities/clearing-information#Settlement%20Process" target="_blank" rel="noopener">https://www.sgx.com/securities/clearing-information#Settlement%20Process</a> If I only hold warrants after the SPAC unit separation/split date, can I vote in the SPAC EGM or on the de-SPAC? Whole SPAC warrants grant holders the right, but not the obligation to buy the company’s shares at a specific price in the future. These warrants are typically exercisable sometime after completion of an initial business combination (i.e. de-SPAC). SPAC warrants do not have voting, redemption or liquidation rights and will expire upon a liquidation of a SPAC and/or if a SPAC fails to complete its initial business combination within the stipulated timeline. Can I exercise the warrants after it has been credited into my account? The whole warrants are typically exercisable within 30 days after de-SPAC is completed (completion of initial business combination), up to the warrant expiry date (usually five years after completion of the business combination).&nbsp;For some SPACs, the exercise period may be the later of: i. 30 days after de-SPAC or ii. 12 months from the SPAC’s IPO. The warrant holder may elect to use cash to exercise and convert their warrants into shares (typically at a 1:1 ratio) during the exercise period. During the warrant exercise period, the sponsors may potentially call for warrant redemption. Please refer to <a href="http://www.sgx.com/SPACs" target="_blank" rel="noopener">www.sgx.com/SPACs</a> for more details on redemption of warrants. For more details on the exercise of specific warrants of the three SPACs listed on SGX as at 28 February 2022, please refer to their individual IPO prospectus.

SPAC Unit Detachment FAQs
Visit www.sgx.com/SPACs for more product information on SPACs.

SPAC

What is a SPAC detachment (i.e. units separate/split) event?  SPAC detachment is an event that occurs typically on the 45th calendar day from listing date. The detachment date (D date) is when SPAC units separate into individually traded SPAC shares and warrants. (Note: A SPAC unit comprises of one share and a fractional warrant).  The last day of trading for SPAC units is one business day prior to detachment (D – 1). Unitholders’ who sell their SPAC units on (D – 1) will not be eligible to receive SPAC shares and warrants. Trading in the SPAC shares and warrants will begin on D date.  Unitholders’ accounts will be credited with SPAC shares and warrants two business days after the detachment date (D + 2). Do note that the stock codes for the SPAC share and SPAC warrant may be different from that of the SPAC unit. Similar to other corporate actions like right issues, investors should trade only if they are aware of the quantity of SPAC shares and SPAC warrants they have been allocated.   The three SPACs currently listed on SGX (as at 28 February 2022) will automatically detach on D date into shares and warrants. Other future SPACs, if any, may offer optional detachment. Detachment dates for different SPACs can vary and investors are advised to look out for the SPAC’s announcement on SGXNet and/or in its prospectus.  When will the SPAC units separate/split?  The detachment date (D date) typically falls on the 45th calendar day from the listing date. If the 45th calendar day falls on a weekend or public holiday, detachment will be on the next business day.

Spacs information

How many shares and warrants will I get for every 1 SPAC unit I own after detachment (D date)?  A SPAC unit comprises a SPAC share and a fractional SPAC warrant (e.g. 0.5 of a warrant). The fraction of a warrant that comes with one unit of a SPAC may differ from the fraction of a warrant for another SPAC unit. See the relevant prospectus for more information.

SPAC shares and SPAC unit

SPAC holdings

What happens with fractional warrants that cannot be combined after detachment date (D date)?  After detachment, fractional warrants which cannot be combined into whole warrants will be disregarded. Only whole warrants can be traded. If you want to hold whole warrants, you must hold enough SPAC units that upon detachment, will result in whole warrants being issued.&nbsp;  Example (Pegasus Asia SPAC)  Scenario 1

Investor holds 100 Pegasus SPAC units
1 Pegasus SPAC unit (PGU) comprises a SPAC share and 0.5 of a warrant
An investor must ensure they hold enough units to form whole warrants:

100 SPAC units (PGU) = 100 SPAC shares (PGS) + 50 warrants (PGEW W291231)


On detachment date, SPAC units (PGU) will separate into shares (PGS) and warrants (PGEW W291231)
The 100 SPAC units will be debited from the unitholder’s securities account
Investor will now own:

100 SPAC shares (PGU) and 50 warrants (PGEW W291231)
Crediting of SPAC shares and warrants into securities account 2 business days post detachment



&nbsp;
Scenario 2 

Investor holds 51 Pegasus SPAC units
1 Pegasus SPAC unit (PGU) comprises a SPAC share and 0.5 of a warrant
A investor does not hold enough units to form whole warrants:

51 SPAC units (PGU) = 51 SPAC shares (PGS) + 25.5 warrants (PGEW W291231)


On detachment date, SPAC units (PGU) will separate into shares (PGS) and warrants (PGEW W291231)
Fractional warrants of 0.5 warrant an investor holds will be disregarded
The 51 SPAC units will be debited from the unitholder’s securities account
Investor will now own:

51 SPAC shares (PGU) and 25 warrants (PGEW W291231)
Crediting of SPAC shares and warrants into securities account 2 business days post detachment



&nbsp;
What is the board lot size for trading of Shares and Warrants?  The shares will be traded in board lot of 100 and warrants will be traded in board lot size of 1.  Where can I check how many shares and warrants I have?  Before the crediting date (D + 2), unitholders will still see their SPAC units in their CDP account holdings. Two business days post detachment date, unitholders will see SPAC shares and warrants credited in their account, and SPAC units debited from the account.  An investor can log on to the SGX Investor Portal to review the CDP account statements to check for the number of shares and warrants credited by 9am on the crediting day (D+2). Do check with your broker and/or financial advisor if you require more information.  I’m worried about trading the wrong quantity of shares and warrants. What can I do?  Similar to other corporate actions, investors should trade only if they are aware of the quantity of SPAC shares and SPAC warrants they have been allocated. Do check with your broker and/or financial advisor if you require more information.  Can I still trade SPAC units on detachment date? If I cannot trade SPAC units from detachment date onwards, what can I trade?  The last day of trading for SPAC units is one business day prior to detachment (D – 1). For SPACs with automatic detachment (note that units for the existing 3 SPACs listed on SGX automatically detach), only SPAC shares and warrants can be traded from detachment date (D).  What happens if I mistakenly trade more SPAC shares/warrants than I have after separation/split?  This may cause a potential short sell scenario. In the event of a short sell on settlement date, CDP conducts a buy-in procedure to buy back shares in the buy-in market for settlement the next day.  For more information on the buying-in process, please see “Settlement Process” here: https://www.sgx.com/securities/clearing-information#Settlement%20Process  If I only hold warrants after the SPAC unit separation/split date, can I vote in the SPAC EGM or on the de-SPAC?  Whole SPAC warrants grant holders the right, but not the obligation to buy the company’s shares at a specific price in the future. These warrants are typically exercisable sometime after completion of an initial business combination (i.e. de-SPAC).  SPAC warrants do not have voting, redemption or liquidation rights and will expire upon a liquidation of a SPAC and/or if a SPAC fails to complete its initial business combination within the stipulated timeline.  Can I exercise the warrants after it has been credited into my account?  The whole warrants are typically exercisable within 30 days after de-SPAC is completed (completion of initial business combination), up to the warrant expiry date (usually five years after completion of the business combination).&nbsp;For some SPACs, the exercise period may be the later of:  i. 30 days after de-SPAC or ii. 12 months from the SPAC’s IPO.  The warrant holder may elect to use cash to exercise and convert their warrants into shares (typically at a 1:1 ratio) during the exercise period. During the warrant exercise period, the sponsors may potentially call for warrant redemption.  Please refer to www.sgx.com/SPACs for more details on redemption of warrants. For more details on the exercise of specific warrants of the three SPACs listed on SGX as at 28 February 2022, please refer to their individual IPO prospectus.

What to Take Note of for SPAC Unit Detachment into Shares and Warrants

<h2>10 Questions for VTAC</h2>
Company Overview Vertex Technology Acquisition Corporation (VTAC), a Vertex Holdings SPAC, seeks to acquire business(es) at the forefront of technology transformation, creating longterm value for its target company and stakeholders. VTAC aims to acquire or merge with value-creating businesses at a fast growth stage of their life-cycle and will focus its search on AI, Cyber Security and Enterprise Solutions, Consumer Internet and Technologies, FinTech, Autonomous Driving/New EVs, BioMedTech and DigiHealth. <a href="https://www.sgx.com/securities/equities/VTA" target="_blank" rel="noopener">Link to StockFacts company page</a>
<ol>
<li>Why do a Special Purpose Acquisition Company (SPAC) listing now?</li>
</ol>
<ul>
<li>SPACs have been gaining attention and garnering strong momentum in Asia, in tandem with the rise of numerous technology companies in the region. Facilitating the strong interest in Asian SPACs is also attributed to the diverse set of investors that are familiar with the SPAC offering, with some even being SPAC sponsors in the US.</li>
<li>Given favourable market sentiments for SPACs in Asia and maturity of local investors, VTAC believes that the time is ripe for a SPAC listing in Singapore. VTAC’s listing will provide public market investors with the opportunity to invest in fast-growing technology companies at the forefront of technological transformation.</li>
</ul>
2. How does VTAC differentiate itself from other SPACs?
<ul>
<li>VTAC leverages on the valuable experience of its Sponsor – Vertex Venture Holdings Ltd (Vertex). Vertex is a Singapore-based global venture capital platform, which provides anchor funding and operational support to a proprietary global network of venture capital funds in key innovation hubs. Across the Vertex ecosystem, it manages a portfolio of over US$5.1 billion assets as of 31 Dec 2021 (including divestments) comprising of over 200 companies.</li>
<li>Vertex has an over 30-year track record of notable investments, having successfully invested in innovative technologies and divested reputable companiesin the US, Europe, Singapore, Hong Kong, China and Taiwan.</li>
<li>Vertex is also a wholly-owned subsidiary of Temasek Holdings and is reputed as a credible long-term valueadded partner that has been able to supercharge growth and help businesses succeed. Vertex seeks to create value for its start-up portfolio companies through talent recruitment, business development, fundraising and joint venture support, marketing and community development, and regulatory navigation.</li>
</ul>

10 Questions for VTAC
Company Overview Vertex Technology Acquisition Corporation (VTAC), a Vertex Holdings SPAC, seeks to acquire business(es) at the forefront of technology transformation, creating longterm value for its target company and stakeholders. VTAC aims to acquire or merge with value-creating businesses at a fast growth stage of their life-cycle and will focus its search on AI, Cyber Security and Enterprise Solutions, Consumer Internet and Technologies, FinTech, Autonomous Driving/New EVs, BioMedTech and DigiHealth. Link to StockFacts company page

Why do a Special Purpose Acquisition Company (SPAC) listing now?


SPACs have been gaining attention and garnering strong momentum in Asia, in tandem with the rise of numerous technology companies in the region. Facilitating the strong interest in Asian SPACs is also attributed to the diverse set of investors that are familiar with the SPAC offering, with some even being SPAC sponsors in the US.
Given favourable market sentiments for SPACs in Asia and maturity of local investors, VTAC believes that the time is ripe for a SPAC listing in Singapore. VTAC’s listing will provide public market investors with the opportunity to invest in fast-growing technology companies at the forefront of technological transformation.

2. How does VTAC differentiate itself from other SPACs?

VTAC leverages on the valuable experience of its Sponsor – Vertex Venture Holdings Ltd (Vertex). Vertex is a Singapore-based global venture capital platform, which provides anchor funding and operational support to a proprietary global network of venture capital funds in key innovation hubs. Across the Vertex ecosystem, it manages a portfolio of over US$5.1 billion assets as of 31 Dec 2021 (including divestments) comprising of over 200 companies.
Vertex has an over 30-year track record of notable investments, having successfully invested in innovative technologies and divested reputable companiesin the US, Europe, Singapore, Hong Kong, China and Taiwan.
Vertex is also a wholly-owned subsidiary of Temasek Holdings and is reputed as a credible long-term valueadded partner that has been able to supercharge growth and help businesses succeed. Vertex seeks to create value for its start-up portfolio companies through talent recruitment, business development, fundraising and joint venture support, marketing and community development, and regulatory navigation.


10 in 10 with Vertex Technology Acquisition Corporation - Unlocking The Potential Of Technology Investment

Singapore

Vertex Technology Acquisition Corporation is a SPAC.

Vertex Technology Acquisition Corporation (VTAC SP)

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Vertex Technology Acquisition Corporation (VTAC SP)

What to Take Note of for SPAC Unit Detachment into Shares and Warrants

SPAC Unit Detachment FAQs Visit www.sgx.com/SPACs for more product information on SPACs. What is a SPAC detachment (i.e. units separate/split)...

Singapore Exchange Ltd (SGX)

10 in 10 with Vertex Technology Acquisition Corporation - Unlocking The Potential Of Technology Investment

10 Questions for VTAC Company OverviewVertex Technology Acquisition Corporation (VTAC), a Vertex Holdings SPAC, seeks to acquire business(es) at...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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