Singapore-headquartered Synagistics, operator of e-commerce solutions platform Synagie, began trading on Oct 30 as the first successful de-spac listing on the Stock Exchange of Hong Kong (SEHK).
Its shares opened at HK$20 ($3.41), before reaching an intra-day high of $50.05.
The shareholders of Hong Kong (HK) Acquisition Corporation, a special purpose acquisition company (spac), had approved the business combination at an extraordinary general meeting on Oct 25.
HK Acquisition Corporation has been renamed Synagistics and its shares are now trading under that name on the SEHK.
HK Acquisition Corporation completed its spac offering in August 2022, comprising 100,050,000 spac shares at an issue price of HK$10 and 50,025,000 spac warrants. The spac entered into a business combination agreement with Synagistics on June 28 this year, less than two months before its 24-month deadline to announce a de-spac transaction.
See also: Synagie bridges the gap between brands, marketplaces and online shoppers
According to an Oct 25 announcement, Synagistics remains “well-capitalised” to support its growth, bolstered by HK$551 million Private Investment in Public Equity (PIPE) investments from a diverse group of institutional investors, including China Orient Enhanced Income Fund and Celestial Link, which is an indirect wholly owned subsidiary of HKT Trust and HKT, together a Hong Kong-listed investment holdings company.
Synagistics is active in Singapore, Malaysia, the Philippines, Vietnam, Thailand and Indonesia. It has also expanded into Hong Kong and Spain.
The company provides integrated digital solutions to its brand partners via two core propositions: its directto-brands model, which helps brands to manage the full spectrum of their e-commerce business while creating a unified experience for consumers throughout the entire consumer journey; and its direct-to-consumers model, which sells brands’ products directly to consumers through online stores owned by Synagistics and operated under the name of its brand partners across various e-commerce channels.
See also: Hong Kong's first de-spac listing still leaves sector in limbo
Founded in 2016, Synagistics was listed on the Singapore Exchange S68 (SGX) in August 2018 at a market capitalisation of $71 million. It was the first e-commerce marketplace listed on the SGX. Alibaba took the company private in November 2020.
Co-founder Olive Tai was named EY Entrepreneur of The Year in e-commerce services at the 22nd EY Entrepreneur of The Year (EOY) 2023 Singapore awards.
Following the de-spac, Tai is now CEO of Synagistics. She is responsible for the operations of the company’s e-commerce businesses and e-logistics segments.
Co-founder Clement Lee is now chairman of the board of Synagistics. He is responsible for the overall strategic planning, business direction and management of the company.
In response to questions from The Edge Singapore, the co-founders say Synagistics is “very proud” to be a “homegrown, Singaporean company” with a “strong, local management team”.
The duo say listing in Hong Kong was “less a matter of preference” and “more a matter of which approach brought the greatest strategic benefits” to Synagistics. “Both the Hong Kong and Singapore markets are well-positioned as international financial centres, with trusted, liquid markets, and access to high-quality capital.”
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According to them, a de-spac listing in Hong Kong provides a “strong validation” of Synagistics’ business model and prospects in the market. The de-spac also offers access to HK Acquisition Corporation’s network across the Greater China market, which is a “crucial market” for their growth strategy.
Norman Chan, chairman and executive director at HK Acquisition Corporation, says: “We are very pleased with the shareholder support for this transaction, which highlights investor confidence in Synagistics’ growth prospects and the potential of Southeast Asia’s digital solutions market. This approval is also a significant milestone for Hong Kong’s capital markets, reinforcing the city’s leadership as an international financial centre.”
Photos: Synagistics, Albert Chua/The Edge Singapore
