Chinese Investment Firm-Backed Tech SPAC Keyarch Acquisition Prices US$100 Million IPO

Special purpose acquisition company Keyarch Acquisition Corporation (Nasdaq: KYCHU) started trading its securities on the Nasdaq Global Market today. The firm priced its initial public offering, aiming to raise total proceeds of US$100.0 million.

The offering will entail selling 10.0 million units priced at US$10.00 per unit. Each unit is composed of one Class A common share, one-half of a redeemable warrant, and one-tenth of a right. Each whole warrant is exercisable to purchase one common share at US$11.50 per share, while each whole right equates to one common share.

The company units trade on the Nasdaq big board under the symbol “KYCHU”. Once the securities separate, the company shares and warrants will trade under the ticker symbols “KYCH” and “KYCHW”, respectively.

The proposed offering is being managed by EarlyBirdCapital, Inc. and Haitong International Securities as the joint bookrunners. The underwriters were granted a 45-day over-allotment option to purchase additional 1.5 million company units.

The blank check company is backed by Hong Kong-based investment management firm Keywise Capital which also has offices in Beijing and Shanghai. However, its charter will not allow a business combination with firms whose operations are located in China (including Hong Kong and Macau).

Keywise Capital managing director Fang Zheng and managing partner Dr. Kai Xiong lead the SPAC as the board chairman and CEO, respectively. The firm said that it intends to focus its business combination search on “disruptive technology and innovative services companies in developed economies such as the U.S. and Israel, and Southeast Asia.”

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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