According to reports, the Chinese steel website Zhaogang is close to merging with a SPAC in Hong Kong.

Online Steel Market in China The ZG Group has reached an agreement to combine with a Hong Kong blank-check firm sponsored by China Merchants Bank Co.’s offshore asset management arm in order to go public in Hong Kong.

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The Shanghai-based business previously known as Zhaogang.com has filed with the market on Thursday to confirm a Bloomberg News story that it would merge with the Hong Kong-listed Aquila Acquisition Corp. The transaction places a HK$10 billion ($1.3 billion) value on ZG Group.

A total of ten investors, including a unit of commodities trading behemoth Trafigura Group, have committed to a private investment in public equity (PIPE) to finance the deal, as detailed in a regulatory filing. The amount raised from the PIPE is HK$605,000,000.

On Thursday, Aquila Acquisition shares remained constant at HK$8.93, with around HK$18 million changing hands.

Since Hong Kong’s stock market introduced SPAC guidelines in 2021 to try to cash in on the $245 billion US infatuation that flared and died in less than two years, a successful merger would be the first so-called de-SPAC by a Hong Kong-listed blank-check business.

Read More: Bankruptcies and Fire Sales Will Follow the SPAC Craze’s Decline

In March of 2022, Aquila became the first special purpose acquisition company (SPAC) to go public in Asia. The IPO brought in roughly HK$1 billion ($128 million). According to its prospectus, the blank check firm intended to look for a target in Asia, with a particular emphasis on China, inside “new economy” industries. On Wednesday, the SPAC’s shares ended at HK$8.93, down from their initial offering price of HK$10.

The filing indicates that an extraordinary general meeting of Aquila shareholders to vote on the merger would be convened in or around the first week of December. After the de-SPAC merger, the firm will split into two classes, with Class A shareholders receiving one vote and Class B shareholders receiving ten votes each.