Distoken Acquisition, a SPAC focused on tech in Asia, files for a $40 million IPO

Distoken Acquisition, a blank check company targeting the tech sector in Asia, filed on Tuesday with the SEC to raise up to $40 million in an initial public offering.

The Yunnan, China-based company plans to raise $40 million by offering 4 million units at $10. Each unit consists of one share of common stock; one-half of a warrant, exercisable at $11.50; and one right to receive one-tenth of a share of common stock upon the completion of an initial business combination. At the proposed deal size, Distoken Acquisition would command a market value of $54 million. 

The company is led by CEO and Chairman Jian Zhang, who currently serves as CEO and Managing Partner of Yunnan Xiaosen Venture Capital, CEO of Hangzhou Hechuang Investment Management, and CEO of blockchain company Tongzheng Huilian Technology. The company plans to target businesses in the tech industry that have their primary operations in Asia with enterprise values between $100 million and $200 million.

Distoken Acquisition was founded in 2020 and plans to list on the Nasdaq under the symbol DISTU. The SPAC filed confidentially on July 31, 2020. EarlyBirdCapital is the sole bookrunner on the deal.