Black Spade, a SPAC backed by Melco’s chairman Lawrence Ho, applies to list in Hong Kong

March 21, 2022 Hong Kong Industry Updates

Black Spade Asia Acquisition, an asset buyer backed by the chairman of Macau’s casino operator Melco Resorts & Entertainment, has applied to raise capital in Hong Kong, joining 10 other so-called blank cheque companies on the city’s exchange.

Black Spade, backed by Melco’s chairman and chief executive Lawrence Ho Yau-lung, as well as BOCHK Asset Management, has applied to list on the Hong Kong stock exchange (HKEX), according to a filing.

The company is the 11th special purpose acquisition company (SPAC) to seek listing in Hong Kong, and the second to file in a week after the application by A SPAC (HK) Acquisition, backed by New World Development’s chief executive Adrian Cheng Chi-Kong. Aquila Acquisition, the first SPAC to list in Hong Kong, fell 3.2 per cent in its trading debut on Friday.

SPACs are created – and typically anchored by well-known public figures, including celebrities, sports icons and famous entrepreneurs – with the objective of raising capital to buy assets within a period. In Hong Kong, a SPAC needs to raise at least HK$1 billion (US$128 million) and must announce a deal within 24 months.