- Social Capital Hedosophia – the blank check partnership led by billionaire investor Chamath Palihapitiya and venture fund founder Ian Osbourne – aims to raise $ 500 million with its fourth blank check company, Bloomberg reported on Tuesday.
- The Special Acquisition Company, or SPAC, will rightly be named Social Capital Hedosophia Holdings Corp. IV.
- News of the acquisition vehicle arrived just hours after Palihapitiya confirmed that Social Capital Hedosophia̵
- SPACs have grown in popularity throughout the year as a new alternative to traditional IPOs and direct listings.
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As investors react to its latest merger, Social Capital Hedosophia is already planning its next blank check acquisition vehicle.
The company – led by billionaire investor Chamath Palihapitiya and venture capital founder Ian Osbourne – aims to raise $ 500 million for its next special-purpose acquisition firm, or SPAC, Bloomberg reported on Tuesday. The company is the fourth blank check company to emerge from the partnership and will rightly be named Social Capital Hedosophia Holdings Corp. IV.
Social Capital Hedosophia submitted confidential plans for SPAC to the Securities and Exchange Commission, sources told Bloomberg.
The report comes just hours after Palihapitiya confirmed plans to merge the company’s second SPAC with Opendoor. The deal values Opendoor at $ 4.8 billion and will make the real estate technology company public. Shares of the SPAC involved jumped as much as 26% in Tuesday’s trading.
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News of the partnership’s latest blank check company adds to SPAC craze sweeping through the financial sector. The commercial vehicles raise capital through an IPO and use the funds to merge with a target company. SPACs are not required to disclose their objectives before raising funds, and the resulting merger transactions serve as a new alternative to a stock exchange listing or direct listing.
The pace of SPAC agreements this year is darkening slightly, seen in 2019. More than DKK 38 billion $ Traveled 96 deals this year so far, according to SPACInsider.com. That’s almost three times the funds raised from SPACs throughout last year.
Social Capital Hedosophia’s first SPAC merged with Virgin Galactic in October 2019. The shares in the combined company have risen through this year, as investors flocked to the first chance to invest in a major space stock.
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