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Chamath Palihapitiya's IPOD, IPOE, IPOF SPACs: What Investors Should Know

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Chamath Palihapitiya's IPOD, IPOE, IPOF SPACs: What Investors Should Know

Chamath Palihapitiya has been one of the most well-known names in the SPAC market in 2020.

Palihapitiya has announced deals for his first three SPACs — IPOA, IPOB and IPOC — and also been a financer of several SPACs via PIPEs.

The legendary SPAC investor launched three SPACs that are all trading at a premium.

Three New SPACs: The three newest SPACs from Palihapitiya are Social Capital Hedosophia Holdings Corp IV (NYSE: IPOD), Social Capital Hedosophia Holdings Corp V (NYSE: IPOE) and Social Capital Hedosophia Holdings Corp VI (NYSE: IPOF).

All three SPACs have the same management team, with one additional team member making the difference for the names. All three are also targeting the technology market.

Related Link: Social Capital CEO Chamath Palihapitiya Plans SPACs From IPOA To IPOZ

Social Capital Hedosophia Holdings Corp IV: The additional team member for IPOD is Nirav Tolia. The former CEO and co-founder of NextDoor helped the company raise $250 million at a $1.5-billion valuation.

Tolia also worked at Benchmark and Shopping.com. Tolia was the CEO and co-founder of Epinions and one of the early employees of Yahoo.

This fourth SPAC from Palihapitiya raised $400 million, which was an increase from its originally announced $350 million.

Shares closed at $13.60 on Tuesday.

Social Capital Hedosophia Holdings Corp V: The extra team member on this SPAC is Jay Parikh, the former head of engineering at Facebook (NASDAQ: FB).

Parikh held that position for six years and also held the role of VP of infrastructure at the company for several years.

Parikh also worked for Ning Inc and Akami Technologies (NASDAQ: AKAM). He serves on the board of directors for Atlassian Corporation (NASDAQ: TEAM).

This SPAC raised $700 million, up from a previous planned offering of $650 million. 

The stock closed at $11.62 Tuesday. 

Social Capital Hedosophia Holdings Corp VI: The sixth SPAC from Palihapitiya raised $1 billion.

The extra team member on this SPAC is Richard Costolo, the former CEO of Twitter Inc (NYSE: TWTR). Costolo led Twitter from 2010 to 2015. He was also the founder of FeedBurner, which was acquired by Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) unit Google in 2007.

Shares closed at $11.80 Tuesday. 

Benzinga's Take: Palihapitiya took Virgin Galactic (NYSE: SPCE) public with the first Social Capital Hedosophia SPAC.

Opendoor (NYSE: OPEN) was the second, and Social Capital Hedosophia Holdings Corp III (NYSE: IPOC) is set to merge with Clover Health. 

The investor has experience in finding companies to complete deals with and a strong track record of performance.

 

Related Articles (AKAM + FB)

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Posted-In: Chamath Palihapitiya Nextdoor Richard Costolo SPACNews Small Cap IPOs Trading Ideas Best of Benzinga

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