On October 30,2024, Synagistics Company (Shiteng Holdings), a subsidiary of The Southeast Asian e-commerce agency operation field of Alibaba, was listed on the main board of the Hong Kong Stock Exchange through the merger with SPAC Special Purpose Acquisition Company (Huide Acquisition), and Huide acquisition was renamed Shiteng Holdings (02562.HK). This SPAC merger case is a milestone as it is the first SPAC merger transaction in Hong Kong since the establishment of the SPAC listing mechanism in 2022.

The Hong Kong Stock Exchange established the SPAC listing mechanism in 2022, and five SPAC companies have been listed so far, but there has been no successful acquisition transaction (De-SPAC) before. In August 2022, Huide, launched by Alan Chan, former president of the Hong Kong Monetary Authority, and Zeng Jingxuan, former Greater China chairman of Standard Chartered Bank, raised about HK $1 billion, making it the third SPAC to be listed in Hong Kong. As one of the many SPAC companies listed in Hong Kong, Huide Acquisition's listing is the practical exploration of the SPAC model in the Hong Kong capital market, which lays a certain foundation for the subsequent development of other SPAC companies and related M & A transactions.

Before the completion of the merger, Alibaba held 22% of Synagistics 47., Gobi Ventures Meranti fund held 22.17%, and the three founder partners held 30.6%. In the new company after the completion of the merger, Alibaba's shareholding was reduced to 27.89%, still the single largest shareholder, Gobi Meranti fund was reduced to 13%, and the three founders held a total of 22.35%.

From the industry point of view, Lion Teng Holdings is in a reshaping market environment. In recent years, with the continuous progress of science and technology and the change of market demand, enterprises in related industries are actively seeking transformation and innovation, and Shiteng Holdings is also in the process of market remodeling full of challenges and opportunities. In this process, it not only improved its market competitiveness, but also won wide recognition inside and outside the industry. Both partners, competitors, and people from all walks of life outside the development of e-commerce, all highly appreciated its performance. Shiteng Holdings has become a model of industry transformation and innovative development.

In Hong Kong, the SPAC market is still in its infancy, it is difficult to list, the listing process is strict, and the audit standards in financial indicators, compliance and other aspects are almost harsh, which makes many enterprises hesitate. However, in such difficult circumstances, the success of the listing in the De-SPAC form is significant for Hong Kong financial markets, a memorable milestone and a successful example for other companies. At present, the Hong Kong stock market is in a rapid and complex stage of change. With the gradual improvement of the market, the market prospect is worth looking forward to. At present, the threshold of HKEx is relatively high, the participation degree of investors is not high, and the activity needs to be improved, which needs to continuously improve its competitiveness and market attractiveness.

The influence of the SPAC model has already broken through national boundaries. In 2021, SPAC ushered in a "blowout period" of development, with a total of 613 companies being listed, raising us $162.4 billion, a record high. After the success in the US market, it quickly spread around the world. The UK, Japan, Indonesia, Singapore and Hong Kong exchanges are all actively adjusting their rules to meet the general trend of SPAC development. SPAC model of maturity, not only in the system and structure after the test of time, and in the financing ability, industry adaptability, success rate and market regulation show the characteristics of mature market and advantages, these advantages make SPAC many enterprises, especially start-ups and growth companies listed in the us capital market of an attractive choice. It is hoped that the SPAC market in Hong Kong will be continuously optimized and improved to help more small and medium-sized enterprises to achieve their listing goals.

Since 2009, the group has adopted the SPAC listing model to help many small and medium-sized enterprises in Asia to list overseas, looking forward to the cooperation with you!