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Aquila Acquisition gets HKEX approval, moving Hong Kong’s first blank-cheque listing closer to reality
- Chinese restaurant chain Green Tea Group and Aquila Acquisition have been cleared by Hong Kong stock exchange to launch IPOs
- New issuers face challenges from sliding stock markets amid a surge in oil prices that pose a threat to the global economy
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Hong Kong stock exchange has approved the first initial public offering (IPO) by a special purpose acquisition company (SPAC) under its new listing regime.
The approval for Aquila Acquisition Corp, sponsored by the asset management arm of Chinese brokerage CMB International, was reflected in an updated draft prospectus published on website of Hong Kong Exchanges and Clearing (HKEX) on Wednesday.
While the company did not say how much it plans to raise from the share sale, SPACs in Hong Kong must raise a minimum of HK$1 billion (US$128 million).
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Green Tea Group, a Chinese restaurant chain operator with 236 outlets nationwide, also received a nod from the city’s bourse operator for its IPO. The firm aims to raise between US$100 million and US$200 million, a source familiar with the transaction said.
These companies are pressing ahead with their IPO plans despite concerns over the global economy following Russia’s invasion of Ukraine, which has roiled equities and commodities markets. The price of crude, which has risen to the highest level since 2008, has fuelled fears of a global recession, sending the Hang Seng Index towards a six-year low. The S&P500 fell to its lowest level since June.
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