Hambro Perks IPO: How to invest in this UK’s first ‘blank cheque’ listing

Highlights

  • Hambro Perks launches the first London SPAC listing after the changes in rules.
  • The investment firm is aiming to raise around £150 million through the issuance of 14,000,000 Units at a placing price of £10.00 per Unit.

The London-headquartered investment firm, Hambro Perks, has announced to launch its Initial Public Offer (IPO) on the main market of the London Stock Exchange. Hambro Perks Acquisition Company (HPAC) will be the first SPAC (special purpose acquisition company) to get listed on the LSE since changes were made to the FCA’s listing rules in August 2021 to attract more SPACs.

SPACs as investment vehicles

Hambro Perks, primarily engaged in private investing, is an international investment company aiming to raise around £150 million. High-growth technology firms will be the focus of the company. The main function of the SPACs, like Hambro Perks, is to buy private businesses by raising capital on stock markets. These investment vehicles thus offer a convenient way for private firms to get listed without undergoing the meticulous process of a traditional IPO launch.

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The number of SPACs getting listed is growing worldwide, and so far this year, more than $125 billion of SPACs have been listed in the US alone. London is lagging behind in SPACs listings but will potentially catch up with the help of the new listing regime. Perks has chosen to get listed in London as it is Europe’s technology capital and will eventually attract a greater number of tech firms.

 Hambro Perks IPO

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Hambro Perks IPO

Incorporated under Guernsey laws, the SPAC is planning to issue 14,000,000 Units at a placing price of £10.00 per Unit. This will consist of 14,000,000 Class A ordinary shares and 7,000,000 public warrants. The company is additionally making 1,000,000 units available in line with its over-allotment option.

Hambro Perks IPO: How to invest in this UK’s first ‘blank cheque’ listing

Under the ticker symbol "HPA1", Conditional dealings in public shares have started on 25 November 2021. On the other hand, the unconditional dealings in Public Shares will start on LSE’s main market on 30 November 2021. With the initiation of conditional dealings on the LSE’s main market, approximately £140 million will be raised by the investment firm, based on its placing price. The company’s admission to the Standard Listing on the FCA’s Official List will thus come into effect. It is expected that on 7 January 2022, all Public Warrants of the company will be admitted to the main market of the LSE and also to the standard listing segment of the FCA’s Official List.

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The exclusive Global Coordinator and Bookrunner of the listing is Citigroup Global Markets Limited.

Bottomline

Being the first SPAC to be listed in London, Hambro Perks is a so-called “blank cheque” listing on the LSE. With the listing rules changed in August, the number of offshore SPACs listings will potentially increase, and more tech firms will be attracted to the UK market.

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