03 Sep 2021
Oxus is the first energy transition SPAC focused on emerging markets, and the first SPAC from Kazakhstan
Sova Capital Limited, an FCA authorized and regulated broker headquartered in London, acted as underwriter on the $150m initial public offering (IPO) of Oxus Acquisition Corp., the first special purpose acquisition corporation (SPAC) to focus on energy transition technologies in emerging and frontier markets. Units in Oxus Acquisition Corp begin trading today on the Nasdaq Capital Market under the ticker “OXUSU”.
Sponsored by Kenges Rakishev, a global investor and entrepreneur from Kazakhstan, the transaction is also the first SPAC to go public from the Commonwealth of Independent States (CIS) outside Russia.
Alina Sychova, Head of Capital Markets Origination at Sova Capital, said:
“Sova Capital is delighted to have successfully priced its first SPAC IPO, marking our debut transaction on Nasdaq. The transaction illustrates the strengths of Sova’s business model – we are a broker with a global client base and a sizeable balance sheet; deep relationships with shareholders and leading entrepreneurs across Russia, the CIS and other emerging markets; combined with a nimble, innovative team able to execute at speed and an extensive global partner network that enables us to efficiently deliver outstanding results for our clients.
Investors understand that the transition to sustainable energy use – and the technologies needed to enable this – is a priority in combatting climate change and reducing emissions worldwide, and thus plays strongly into the ESG concerns of the global investment community. SPACs such as Oxus represent an important source of equity funding for entrepreneurs and companies developing innovative technologies in emerging and frontier markets, and give investors the opportunity to both back the technologies of tomorrow and achieve attractive returns on capital while remaining protected by the US legal and regulatory framework.”
The transaction is the latest in a series of successful equity and debt capital markets transactions led by Sova Capital year-to-date. In addition to the Oxus SPAC IPO, Sova Capital has acted on transactions including a $305m follow-on offering for Credit Bank of Moscow, a $77m secondary public offering for Russian spirits producer Beluga Group and a $52 million equity and debt-to-equity conversion for AIM-listed gold miner Chaarat Gold. The firm also has a strong record on ESG transactions, including recent successful social bonds for Russian Railways (RUB 25b) and Sovcombank ($300m).
Oxus Acquisition Corp. is a blank-check company formed for the purpose of effecting a business combination with one or more businesses. Although there is no restriction or limitation on what industry or geographic region its target operates in, Oxus Acquisition Corp intends to pursue prospective targets in energy transition technologies, such as battery materials, energy storage, electric vehicle infrastructure and advanced recycling in emerging and frontier countries including the Commonwealth of Independent States, South and South-East Asia and Middle East and North Africa regions.
Oxus’ founder and sponsor, non-executive Chairman and director is Kenges Rakishev, a global investor and entrepreneur who focuses on acquiring and investing in businesses that can benefit from his group’s operating expertise. The Oxus management team comprises leading entrepreneurs with vast experience across both emerging markets and the industry. It is led by CEO Kanat Mynzhanov, who is supported by independent directors Shiv Khemka (SUN Group) and Christophe Charlier (former Deputy CEO of Onexim Group and former Chairman of Renaissance Capital).
EarlyBirdCapital, Inc acted as Joint Book-Running Manager for the offering alongside Sova.
Sova Capital operates in the US under a Chaperoning arrangement with Auerbach Grayson & Co.