Destone Acquisition, a special purpose acquisition company (SPAC) with backing from Wang Shi, the founder of major Chinese property developer Vanke, on April 8 formally submitted an application for listing on the Hong Kong Stock Exchange (HKEx).
In June 2017, Wang Shi retired as chairman of Vanke’s board of directors, handing over the baton to Yu Liang. Destone Acquisition is the 71-year-old’s first major business venture since retirement.
Cayman-incorporated Destone Acquisition Corp. was established in May 2021, aiming at mergers, share exchanges, asset acquisition, share purchases, and firm reorganization. It is classified as a special purpose acquisition company (SPAC).
SPACs represent an innovative listing model, whereby investors build their own shell corporations for listing. Since the SPAC system of the HKEx came into effect in 2022, 12 such entities have submitted their application forms.
From May 31, 2021 to December 31, 2021, Destone Acquisition did not generate any revenue, resulting in expenses of HK$3,388,800 ($432,266) and net liabilities of HK$3.2 million as of the end of 2021. The company said that it will not generate revenue until the M&A transaction of the SPAC is completed.
Destone Acquisition is 65% held by Wang through a wholly-owned unit (Destone Holdings LLC, a wholly owned subsidiary of Million Ridge International Limited), with the rest owned by Asia Investment Fund Management Limited.
At present, Wang Shi is the chairman of the board of directors of Destone Acquisition, with Goldman Sachs Group’s former head of investment banking for China, Erhfei Liu, being the CEO. Zhang Tian, managing partner of Destone Capital LLC, is the director and CFO of the SPAC.
The company said that it plans to focus on green technology and investment in eco-friendly consumer products and services. Among them, green technologies cover urban technology, smart cities, real estate technology, electric vehicles, clean energy, the Internet of Things, automation, intelligent manufacturing, and more, while eco-friendly consumer products and services include digital services, fitness and entertainment, clothing, food and drinks and other fields.