SINGAPORE— Philippine real estate company DoubleDragon Corp DD.PS said on Tuesday it is considering listing its Singapore-registered unit Hotel101 Global on the U.S. Nasdaq via a merger with a special purpose acquisition company, or SPAC.
DoubleDragon confirmed in response to a local media report that it was weighing the SPAC route as one option to accelerate the international expansion of hotel group Hotel101.
“We likewise clarify, that the amount of equity to be raised will still be finalised at a future date, although it is notable that generally, most SPACs invest about $200 million for mergers and acquisitions,” the company said in a stock exchange filing.
DoubleDragon said it targets for Hotel101 to reach a valuation of up to $17 billion in the near term based on the hotel operator’s internal financial projections, but gave no more details.
Hotel101 provides mid-class hotel accommodation for leisure and business travellers in the Philippines, according to its website. DoubleDragon said Hotel101 will expand to 25 countries including the United States and China by 2026.
SPACs are seen as a quick route to a stock market listing but the once frenzied SPAC market has cooled as it came under closer scrutiny from the U.S. Securities and Exchange Commission amid concerns over what some saw as less stringent due diligence practices.
DoubleDragon’s plan follows that of Vietnamese electric vehicle company VinFast, which plans to list in the United States this month via a merger with a SPAC called Black Spade Acquisition.
The new merged entity was estimated by VinFast and Black Spade to have a potential equity value of $23 billion.
“We also take note from recent news articles that Vietnam is expected to produce their first NASDAQ SPAC company this year with VinFast EV company, and it is the aspiration of DoubleDragon’s Hotel101 to become the first of the same from the Philippines,” DoubleDragon said.
—Reporting by Yantoultra Ngui; Editing by Susan Fenton
