New Frontier Corp. Pricing IPO Tonight

IPO Ahead

New Frontier Corp. Pricing IPO Tonight

Jun 27, 2018 INTEL by Kristi Marvin

SPACs…the Final Frontier?  (For the Quarter at Least)

Apologies for the Star Trek quote, but every time I hear “New Frontier,” its all I can think of…

New Frontier Corp., just filed their CERT, so as widely expected, this SPAC will be pricing their up-sized $230 million IPO tonight for trading Thursday.  The real question is, will there be another surprise up-size?

As a reminder for all of you non-bankers or lawyers out there, you can up-size (or down-size) a deal 20% without having to re-submit a new filing.  Thanks Rule 462(b)!

New Frontier, which is focused on healthcare, technology or education sectors in China, which they refer to as the “Chinese new economy sectors,” is being led by Antony Leung and Carl Wu.  The team has an impressive background and this should be a hot deal.

As previously mentioned, this SPAC has an Anchor Investor and a Forward Purchase agreement which you can catch up on here.  Plus, there is the new “Indications of Interest” to the tune of $90 million.

For reference, we’ve added the summary of deal terms below:

Summary of terms:
  • Focus:  Healthcare, technology or education sectors in China (Chinese New Economy)
  • $10.00 unit comprised of one Class A Ordinary Share, 1/2 warrant
  • Warrant redemption threshold: equals or exceeds $18.00 (cash or cashless exercise)
  • 100% held in trust ($10.00 per share)
  • 24 months to complete an acquisition 
  • Limitation on redemption rights:  20% or more
  • Underwriters:  Credit Suisse, UBS.  I-Bankers as co-manager.