- Bloomberg reported on Tuesday that the social capital Hisopsia – a blank check partnership led by billionaire investor Chamath Palihipitiya and venture fund founder Ian Osbourne – aims to raise $ 500 million.
- Special-Purpose Acquisition Company, or SPAC, appropriately referred to as Social Capital Hedosophia Holdings Corp. Will be named IV.
- A few hours after Paliapitia confirmed the acquisition vehicle news social capital Hisosperia’s second SPAC will merge with real estate tech firm Opendoor.
- SPACs have increased in popularity through the year as a new alternative to traditional IPOs and direct listings.
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As investors react to their latest merger, social capital Hedosocia is already planning its next empty-check takeover vehicle.
The firm – led by billionaire investor Chamath Palihapatia and venture fund founder Ian Osbourne – aims to raise $ 500 million for its next special-purpose acquisition company, or SPAC, Bloomberg. The company is the fourth Blanc-Czech firm to come from the partnership and will be named Social Capital Hedosia Holdings Corp IV.
Social Capital Hadosofia confidentially filed plans with the Securities and Exchange Commission for SPAAC, sources told Bloomberg.
The report comes just hours after Paliapitia confirmed plans to merge the firm’s second SPAC with Opendoor. The deal values Opendoor for $ 4.8 billion and will make the property tech company public. SPAC shares rose 26% in Tuesday trading.
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The latest blanc-check company news of the partnership sparks the SPAC craze through the financial sector. Acquisition vehicles raise capital with the initial public offering and use the funds to merge with the target firm. SPAC is not required to disclose its target before raising funds, and the resulting merger deals serve as a novel alternative to the initial public offering or direct listing.
According to the SPAC, deals are getting easier this year, which is seen in 2019. According to SPACInsider.com, more than $ 38 billion has been raised in 96 deals so far this year. This is nearly three times the money raised from SPACs through all of last year.
In October 2019, the social capital Hedosia’s first SPAC merged into Virgin Galactic. Shares of the joint firm have sprung up this year as investors offered their first opportunity to place bets on major space-travel stocks.
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