Noventiq strikes preliminary SPAC deal to list in New York

Noventiq believes it needs fresh answers to revitalise value amid sluggish demand for its global depository receipts in London.
Noventiq strikes preliminary SPAC deal to list in New York

London-listed IT services firm Noventiq is making provisions for a dual listing in New York.

It has agreed a preliminary letter-of-intent for a SPAC merger with the Nasdaq-traded special acquisitions vehicle Corner Growth Acquisition Corp., whose investors are mainly tech veterans.

Noventiq, formerly known as Softline Holding, listed on the London Stock Exchange in October 2021 while also debuting equity in Moscow, though the Russian business was later disposed to another company.

Its LSE equity is generally traded as global depository receipts rather than ordinary shares.

The company now says these GDRs are generating "very limited trading volume".  A secondary IPO in New York would be an attempt to achieve "fair reflection" of their perceived value, possibly deriving better returns for its shareholders, it argued.

As of close February 8th, Noventiq stock options were priced at $1.14 each, down from nearly $4 a year ago.

The company's IT services and consulting portfolio includes multi-cloud services, future workspaces, hybrid infrastructure, cyber security and application development.

Noventiq board chairman, Jacques Guers, commented: "Today’s announcement is a significant step towards our objective to realise the true fundamental value of Noventiq for all of our stakeholders.

"We have built a great company with a very strong track record for growth, and a partnership with Corner Growth is an exciting move as we look ahead to a potential listing on Nasdaq. 

"Corner Growth’s team has a strong history with companies in the emerging markets, helping to generate added sales channels, contract opportunities, and access to significant customer networks at the highest levels.”

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