Three blank check companies or SPACs (Special Purpose Acquisition Company), widely referred to the entities having plans of future merger or acquisition with an unidentified business or a person, backed by the Canadian-American venture capitalist Chamath Palihapitiya, 44, a former Facebook executive who had served the company between 2007 and 2011 alongside a management board member of the San Francisco-based American professional basketball team Golden State Warriors, had been on the lookout to raise up to $2 billion through Initial Public Offerings (IPOs) in the US, regulatory filings with the US Securities and Exchange Commission (SEC) had unveiled on Friday.
In point of fact, as beforementioned the blank check companies or SPACs usually raise capitals through IPOs in order to purchase a private company usually within two years of the IPOs and later the acquisition deal allows the private company to go public by bypassing the conventional routes.
Aside from that, according to the regulatory filings with the US SEC revealed later this week, a blank check company backed by Palihapitiya had reached a merger deal with Virgin Galactic Holdings on October last year, while another blank check company founded by the former Facebook executive has been set to merge with the Japanese tech investment conglomerate holding SoftBank-backed Opendoor Labs Inc.
In tandem, the regulatory filings had also added that the new blank-check companies, called as the Social Capital Hedosophia Holdings IV, V and VI, had been looking to hoard up to $350 million, $650 million and $1 billion respectively in NYSE IPOs, while the units would be offering stocks alongside warrants at their slated initial offerings.
SPAC acquisition in 2020 climbed to a record $27.4 billion
Concomitantly, latest move from Palihapitiya-backed blank check companies comes over the heels of a flurry of SPAC acquisitions in 2020, while SPAC takeovers had climbed to a record $27.4 billion including debts this year, data from SPAC research had unveiled.
Notably, the Zurich-based investment banking company Credit Suisse would be the sole underwriter of the IPOs of Palihapitiya-backed blank check companies, the regulatory filings had unfurled.