Social Capital Is Seeking $2 Billion for Three New SPACs
Social Capital Hedosophia is seeking to raise at least $2 billion for three new blank-check companies.
The partnership between venture capitalist Chamath Palihapitiya and longtime investor Ian Osborne plans to raise $350 million, $650 million and $1 billion for its fourth, fifth and sixth special purpose acquisition companies, respectively, according tofilings on Friday that confirmed an earlier Bloomberg report.
Social Capital could gather as much as $2.76 billion collectively:$483 million, $897 million and $1.38 billion for the three vehicles. That can occur if the deals are increased by 20% and a 15% greenshoe is exercised by underwriters. Those expansion mechanisms were both utilized in Social Capital’s first three IPOs, Bloomberg data show.
The partnership, which raised its first SPAC in 2017, is ramping up its offerings amid a surge in popularity for the investment vehicles. SPACs provide a faster route for companies seeking to gain a listing without the scrutiny or risks of an initial public offering.
The fourth Social Capital vehicle features Nextdoor co-founder Nirav Tolia as lead independent director while Facebook Inc. engineering executive Jay Parikh and former Twitter Chief Executive Officer Dick Costolo hold the same role at the fifth and sixth SPACs, respectively. At least one of the vehicles is likely to pursue an acquisition outside the U.S., said a person with knowledge of the matter who asked not to be named because the information is private.
A representative for Palo Alto, California-based Social Capital Hedosophia declined to comment.
Social Capital has as many as 26 such deals planned. On a podcast, Palihapitiya said he reserved tickers ranging from “IPOA” through “IPOZ” on the New York Stock Exchange.
This week, the partnership’s second blank-check company, Social Capital Hedosophia Holdings Corp. II,agreed to merge with property technology Opendoor. Its first SPAC merged with billionaire Richard Branson’s space company to formVirgin Galactic Holdings Inc.
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