Vision Deal Celebrates SPAC Listing, Founders Say More to Follow

On IPO day, CapitalWatch talked to both David Wei and Lin Feng – and learned that Vision Deal's listing on Friday was just the beginning for the duo.
Jun. 10, 2022 20:34
Vision Deal Celebrates SPAC Listing, Founders Say More to Follow

(CapitalWatch, June 10, Hong Kong) Vision Deal HK Acquisition Corp. (HKEX: 7827) lifted off on the Stock Exchange of Hong Kong Friday as the second SPAC listing in the city – and the first to be initiated by private investors.

Vision Deal raised about $128 million through the offering of shares (HKEX: 7827) and warrants (HKEX: 4827) following a successful roadshow that led to full subscription of the shares by late May. The de-SPAC target will be a mature product in the smart car technologies sector or cross-border e-commerce.

Heading the special purpose acquisition vehicle is David Wei of Vision Knight Capital, a consulting-first private equity investment fund in Shanghai, as well as Lin Feng, the founder of the cross-border investment bank DealGlobe Group. Another stakeholder in Vision Deal is advisory firm Opus Capital. Co-sponsors of the listing in Hong Kong were Citigroup and Haitong International Securities Group Ltd.

On IPO day, CapitalWatch talked to both David Wei and Lin Feng – and learned that Vision Deal's listing on Friday was just the beginning for the duo.

SPAC listings have been integrated into the Hong Kong exchange in early January and remain quite new. So far, out of about a dozen filings, just two blank-check companies have celebrated getting a public status – the first being Aquila Acquisition Corp. (HKEX: 7836), launched by a state-backed institutional investor.

Wei told CW that during Vision Deal's pre-IPO roadshow, he and Feng held 108 investor meetings and converted 94. In addition, 75% of the capital in the SPAC vehicle was contributed by institutional investors. Now, more SPACs will follow suit, and the Vision Deal duo isn't stopping here. The SPAC listing today was just the first step of many, the founders said.

"Our commitment to the investor in our first SPAC is to deliver de-SPAC ASAP and generate a good return. Then we'll be on the road for the second and the third one," Wei told CW.

Feng added, "We took the first step. We will test our ability to combine our skillset. We will complete not just any de-SPAC but a very good de-SPAC for the investors. We will then ensure the stock performs well after our de-SPAC. This is where David comes in with his post-investment integration capabilities."

He continued, "David can always deliver with strategic advice and guided direction to the company. Meanwhile, on the side of DealGlobe, we will assist the management team to potentially do some acquisitions on top of their organic growth. Lastly, while we are proving that, we will potentially launch our second SPAC."

(David Wei and Lin Feng on SPAC listing day; courtesy of Vision Deal)

Known also as the former chief executive officer of e-commerce giant Alibaba (NYSE: BABA; HKEX: 9988), Wei founded Vision Knight to invest in late-stage companies in China. Its portfolio counts blind-box toy giant Pop Mart International (HKEX: 9992), LGBTQ dating app operator BlueCity Holdings Ltd. (Nasdaq: BLCT), and tech company Anker Innovations, among many others.

Meanwhile, DealGlobe, with offices in Shanghai and London, focuses on mergers and acquisitions and aims "to become one of the best boutique investment banks," as Feng described. The firm has so far carried out $3.4 billion in deals, including inbound and outbound deals, pure equity M&A, share-backed debt financing, structured convertible instruments, and capital raises. 

At this time of high volatility in the markets, Wei called the SPAC a "risk-free safe harbor for capital." He said the trading Friday reflected that sentiment – while the share price wavered slightly below the line, there's been surging interest for Vision Deal warrants.

Vision Deal gave itself 18 months to find a de-SPAC target, and Wei has stressed that the duo will look to complete a deal as soon as possible considering the current market condition. Wei noted that the company has a number of strong pipeline deals already secured, and expressed confidence in a quick turnaround.

"This is a perfect market to lock the entry/merger valuation with a potential pipeline deal," Wei told CW.

In a February interview, Feng told CW that Vision Deal will be looking for the "sector champion" for a de-SPAC target. "If they are not No. 1, they should at least be in the top two within a very niche sector," he said.

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