Polibeli targets SPAC listing using Chenghe Acquisition II Co., with Asia in its sights

Chenghe Acquisition II Co. shareholders will vote later this month on a merger with the Asia-focused B2B e-commerce company Polibeli

Key Takeaways:

• Chenghe Acquisition II Co. hopes to soon complete its SPAC merger with Polibeli, which would then become a U.S.-listed company
• Polibeli operates a B2B e-commerce platform that supplies a wide range of products to Asian retailers, with an initial focus on Indonesia, Japan and Hong Kong

By Doug Young

Chenghe Acquisition II Co. (CHEB.US), a special purpose acquisition company (SPAC) that raised $86.25 million through its June 2024 IPO, is expecting to soon complete a merger with target company Polibeli Group Ltd., a B2B e-commerce platform headquartered in Indonesia, according to its latest regulatory filing. Upon completion of the proposed transaction, Chenghe II will become a wholly owned subsidiary of Polibeli, which plans to become a publicly listed company on the Nasdaq.

Polibeli signed its initial business combination agreement with Chenghe last September, and a special meeting has been scheduled on May 23 for Chenghe shareholders to vote on the deal. Closing is expected not long afterwards if shareholders give their approval, subject to meeting closing conditions, including the Nasdaq listing approval.

Polibeli’s platform connects suppliers with small- and medium-sized businesses, mostly retailers, with a focus on providing a wide range of consumer products, including electronics, home appliances, toys, watches and accessories, cosmetics and skin, oral and other healthcare products. The company currently provides services to customers across key markets in Asia and Europe.

Polibeli’s revenue rose 32.7% year-on-year in 2024 to just over $30 million, representing respectable growth for such a young company. The company’s operations in Japan and Indonesia are its core revenue engines, accounting for the vast majority of total sales — Japan contributed about 52% and Indonesia at 38% in 2024, as disclosed in the latest filing. The company achieved positive gross profit in 2024, though its gross margin for global goods trading fell last year, partly due to its use of a low-price strategy to boost its Indonesia presence.

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