Rosewood Hotel Group, Hong Kong, plans to file for a special purpose acquisition company (SPAC) listing that could aim to raise about US$400 million, according to multiple reports citing people with knowledge of the matter.
Rosewood, run by Sonia Cheng, the granddaughter of family-run New World Development Founder Yu-tung Cheng, has enlisted Credit Suisse and JPMorgan to lead the U.S. SPAC listing, which targets the consumer sector, according to a Reuters report citing two knowledgeable sources.
Typically, a SPAC, a blank-check company that raises money through initial public offerings (IPOs) and merges with firms by enticing them with shorter listing timelines, will issue shares at US$10 apiece.
If the deal materializes, it would join a growing list of such transactions involving Asian issuers, who are lured by the SPAC IPO’s easier execution and lucrative returns once the SPACs merge with target companies.
Funds raised via SPAC IPOs reached US$60 billion by end-February, Dealogic data showed, already more than 70% of 2020’s annual deal value.