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Hong Kong’s Prenetics Closing to $1.3 Billion SPAC Merger

UTC by Darya Rudz · 3 min read
Hong Kong’s Prenetics Closing to $1.3 Billion SPAC Merger
Photo: Prenetics / Instagram

After Prenetics completes the SPAC merger, it will become the first billion-dollar start-up in Hong Kong to go public. 

Hong Kong’s leader in digital health and genetic testing Prenetics Ltd is planning to conduct a SPAC merger with Artisan Acquisition Corp (NASDAQ: ARTA), Cayman Islands-based special purpose acquisition company. According to those familiar with the matter, the deal will bring the valuation of a new entity to $1.3 billion. The transaction will be completed later this year.

Neither Prenetics nor Artisan Acquisition commented on the announcement. However, it is known that within the deal, Prenetics will get the $339 million raised in the SPAC. It will also get another $60 million in PIPE financing. UBS Group AG (SWX: UBSG), Citigroup Inc. (NYSE: C), Credit Suisse Group AG (NYSE: CSGN), and CICC will act as financial advisors on the transaction.

Notable, after Prenetics completes the SPAC merger, it will become the first billion-dollar start-up in Hong Kong to go public.

SPAC mergers as alternatives for companies that want to go public have become quite popular lately. In a SPAC merger, a SPAC agent (or blank check company) raises capital through an initial public offering (IPO) for the purpose of acquiring an existing operating company. Subsequently, an operating company can merge with (or be acquired by) the publicly traded SPAC and become a listed company in lieu of executing its own IPO. In comparison with traditional IPOs, SPAC mergers provide greater market certainty and more flexible deal terms, as well as more access to capital.

About Prenetics

Prenetics is a famous biotech company that specializes in digital health and genetic testing. With over $60 million in funding from 500 Startups, Beyond Ventures, and more, Prenetics currently operates in 10 offices globally. It has offices in London, Singapore, Hong Kong, and others. To date, Prenetics has performed more than 4,000,000 COVID-19 tests and over 400,000 DNA tests worldwide.

The CEO of the company is Danny Yeung. He is a serial entrepreneur who led multiple investments in DNA Genetic testing companies as Founding Partner/Investor at SXE Ventures before starting Prenetics.

About Artisan Acquisition Corp

Artisan Acquisition Corp is a blank check company with headquarters in George Town, Cayman Islands. It was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more entities.

In May this year, Artisan Acquisition completed a $300 million IPO. Besides, the company has signed a total of $60 million forward purchase agreements with two reputable institutional investors, Aspex and PAG. With the funds Artisan Acquisition raised, it decided to target global healthcare, technology, and consumer companies. As we see, it has started implementing this strategy. Prenetics has become the first company Artisan Acquisition has reached.

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