HONG KONG: Hyphen Group, a financial technology firm backed by Hong Kong billionaire Richard Li, is in advanced talks to go public through a merger with blank-cheque company Provident Acquisition Corp, according to people familiar with the matter.

       A transaction could value the combined company at about US$1bil (RM4bil), the people said, asking not to be identified because the matter is private.

       The deal may include a private investment in public equity, or PIPE, of about US$100mil (RM416mil) anchored by institutional investors, the people said.

       Talks are at an advanced stage and a transaction could be announced before the end of this year, the people said.

       The special-purpose acquisition company (SPAC) is led by Winato Kartono and Michael Aw, two key executives at Provident Group, an investment fund targeting South-East Asian startups.

       Some of its high-profile investments include Indonesia’s ride-hailing giant Gojek, online travel company Traveloka and Thailand-based online fashion retailer Pomelo.

       Provident raised US$230mil (RM956mil) in a US initial public offering in January.

       The blank-cheque firm said it would pursue a business combination with a focus on consumer technology companies in South-East Asia. Negotiations are ongoing and could be delayed or fall apart, the people said.

       A representative for Hyphen declined to comment, while a Provident representative didn’t immediately respond to requests for comment. Nasdaq-listed shares of Provident rose 0.8% on Tuesday, the most in more than two weeks.

       Hyphen has been working with Goldman Sachs Group Inc to review funding options including a listing via a SPAC or a private fundraising, Bloomberg News reported in July. — Bloomberg