Melco chairman Lawrence Ho-backed SPAC raises US$150 million on Nasdaq

Black Spade Capital, the family office of Macau casino operator Melco Resorts & Entertainment's chairman Lawrence Ho Yau-lung, listed its second special purpose acquisition company (SPAC) on Nasdaq on Wednesday.

Black Spade Acquisition II, the SPAC sponsored by an affiliate of Black Spade Capital, priced its initial public offering (IPO) of 15 million units at US$10 each.

Each unit consists of one class A ordinary share and one-third of one redeemable warrant, with each whole warrant exercisable to purchase one class A ordinary share at a price of US$11.50 per share, subject to certain adjustments, according to a statement from Black Spade.

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The units will be listed under the ticker symbol BSIIU.

SPACs, or blank-cheque companies, 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.

Lawrence Ho, chairman of Melco Resorts, has successfully backed the listings of two SPACs. Photo: Jonathan Wong alt=Lawrence Ho, chairman of Melco Resorts, has successfully backed the listings of two SPACs. Photo: Jonathan Wong>

Black Spade Acquisition II said the entertainment, lifestyle and technology industries, particularly those related to artificial intelligence, provide ample business combination opportunities.

The company's management team has also served on another SPAC, Black Spade Acquisition (BSAQ) in various capacities. BSAQ, which was sponsored by an affiliate of Black Spade Capital, completed its US$169 million IPO on Nasdaq in August 2021, according to the statement.

In August 2023, BSAQ completed a US$23 billion merger with electric car maker VinFast Auto, controlled by Vietnam's richest man Pham Nhat Vuong's Vingroup.

In 2022, Hong Kong-based Black Spade Asia Acquisition, a SPAC backed by Melco's Ho, applied to raise capital in the city. However, the company has not yet listed in the city.

In Hong Kong, a SPAC needs to raise at least HK$1 billion (US$128 million) and must announce a deal within 24 months.

Ho, whose net worth was put at US$1.2 billion as of April 4 last year by Forbes, and who ranked 46th among Hong Kong's 50 richest people, is the son of Macau casino tycoon Stanley Ho Hung-sun, who died in May 2020.

The younger Ho said in an interview with the Post in December 2017 that his aim was to transform Macau's traditional casino business into a hospitality and entertainment industry, and extend its reach to the Philippines and Russia.

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