Palihapitiya's Next Three SPACs Raise $2.1B In IPOs

Chamath Palihapitiya’s blank-check companies raised a total of $2.1 billion in three initial public offerings on Thursday.

What Happened: Social Capital Hedosophia Holdings Corp. IV IPOD raised $400 million in the offering. Social Capital Hedosophia Holdings Corp. V IPOE raised $700 million, while Social Capital Hedosophia Holdings Corp. VI IPOF raised $1 billion.

All three special purpose acquisition companies priced each individual unit at $10 and the difference in the amount raised comes from the number of units offered.

Each unit includes a Class A ordinary share and one-fourth of a redeemable warrant. Only whole warrants would be redeemable and entitle the holder to purchase one Class A ordinary share at a price of $11.50.

All the companies will focus on a merger partner in technology industries. IPOE shares are expected to begin trading on Friday on the New York Stock Exchange.

Credit Suisse Group AG CS acted as the book-running manager for all the issues.

Why It Matters: The three SPACs attracted $7 billion in total demand, people familiar with the matter told Bloomberg, and two of the IPOs were priced above the initial targets.

Palihapitiya has plans to launch SPACs with symbols ranging from “IPOA” through “IPOZ.” The investor believes there is strong demand and a “receptive audience” in place for private companies to go public via blank-check companies.

The former Facebook Inc FB vice president is also a financier for Trine Acquisition Corp TRNE a SPAC taking Desktop Metal public.

Last year, Richard Branson’s Virgin Galactic Holdings Inc SPCE merged with Social Capital Hedosophia Holdings Corp. and raised $800 million. 

Social Capital Hedosophia Holdings Corp. II IPOB is set to merge with the real estate tech company OpenDoor in a $4.8 billion deal.

Social Capital Hedosophia Holdings Corp. III IPOC is expected to merge with Alphabet Inc’s GOOGL GOOG Google Ventures-backed Clover Health in the first quarter next year with an enterprise valuation of $3.7 billion.

Correction: A previous version of this story said IPOD and IPOF are expected to begin trading Friday.

Photo by JD Lasica on Flickr

Posted In: Blank Check CompaniesChamath PalihapitiyaSPACsNewsIPOsTech