Around mid-day, we had yet another new SPAC filing with the addition of CITIC Capital Acquisition Corp. (CCAC.U), a $200 million SPAC focused on clean energy. Or more specifically, “companies in the energy efficiency, clean technology and sustainability sectors, with a focus on companies that we believe can be positioned for success in China, as well as other markets in Asia and beyond.“
CITIC Capital will be led by Fanglu Wang, as Chief Executive Officer and Director, and Eric Chan, as Chief Financial Officer and Director, both currently holding senior management positions at CITIC, this SPAC’s sponsor. As for CITIC, they are a global alternative investment management and advisory firm with a strong and established position in China. So if you’re going to have a SPAC searching in that region, having CITIC as a sponsor is a nice complement and should help with deal flow.
As for the sector they looking in, the clean energy space is a particularly compelling one given that as Asia’s middle class (which is sizeable already) continues to grow, demand for cleaner air, environmental conditions, etc., will become of even greater importance. And in China, it has been said that it could even be a factor in political stability. So perhaps now is the right time for a clean energy SPAC in the East.
Looking at this SPAC’s structure, the 100% in trust, 1/2 warrant, 24 months duration is standard fare. In fact, its the same size ($200 million) and same terms as Credit Suisse’s other SPAC on file to IPO – SCVX Corp. As such, there really shouldn’t be much pushback on terms.
Look for this one to price either late in the first week of February, or the following week.
Credit Suisse is sole book-runner.
Winston & Strawn LLP & Davis Polk & Wardwell LLP are issuer’s counsel and underwriter’s counsel, respectively.
WithumSmith+Brown, PC is auditor.