Market Overview

Former Uber Exec Emil Michael Seeks $250M IPO For Blank Check Company

Former Uber Exec Emil Michael Seeks $250M IPO For Blank Check Company

Former Uber Technologies Inc (NYSE: UBER) Chief Business Officer Emil Michael filed a Form S-1 with the U.S. Securities and Exchange Commission on Friday for the initial public offering of his newly-organized special purpose acquisition company (SPAC).

What Happened: DPCM Capital Inc in its IPO intends to offer 25 million shares, with each unit consisting of one Class A common stock share and one-third warrant rights for a $10 offer price. Only whole warrants would be exercisable and each whole warrant will entitle the holder to buy Class A common stock at an exercise price of $11.50. Underwriters will be paid 2% of gross proceeds as commissions.

The Class A common stock could be listed on NYSE under the symbol "XPOA."

The emerging growth company, led by CEO Michael, intends to raise a minimum of $250 million in proceeds. Including the underwriters' over-allotment options, the proceeds could reach up to $287.5 million.

Some of DPCM’s special advisors include former Executive Chairman of Alphabet Inc’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Board Eric Schmidt, early Uber investor Shervin Pishevar, and Betsy Atkins — founder of Ascend Communications.

Why Does It Matter: DPCM Capital will focus its search within the technology sector for North America-based enterprises valued between $1 billion and $2 billion.  

Blank check companies are increasingly becoming more popular in the IPO space. The privately-owned lifestyle brand - Playboy Enterprises Inc announced last week, plans for a merger with the blank check company Mountain Crest Acquisition Corp (NASDAQ: MCAC). 

In the last week of September, United Wholesale Mortgage LLC entered into a merger deal with SPAC Gores Holdings IV Inc (NASDAQ: GHIV) for a $16.1 billion valuation. 

In August, electric vehicle company Lordstown Motors Corp decided to merge with SPAC DiamondPeak Holdings Corp (NASDAQ: DPHC), CNBC reported. Whereas, in June, EV maker Nikola Corporation (NASDAQ: NKLA) announced a reverse merger with VectoIQ Acquisition Corp.

Photo courtesy: Kevin Moloney of Fortune Brainstorn TECH via Flickr


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