Palihapitiya-backed Blank-check Firms Look To Raise $2 Billion Through IPOs

The new companies, called Social Capital Hedosophia Holdings IV, V and VI, are looking to raise up to $350 million, $650 million and $1 billion, respectively, by selling units – made up of stocks and warrants – on the New York Stock Exchange.

A blank-check company, also known as a special purpose acquisition company (SPAC), uses capital raised through an initial public offering to buy a private company, usually within two years. The deal then takes the private company public.

Other high-profile investors such as Bill Ackman and Michael Klein have also raised billions through their SPACs this year. Ackman’s SPAC Pershing Square Tontine Holdings Ltd raised $4 billion in its IPO in July, making it the largest SPAC IPO.

SPAC acquisitions in 2020 have jumped to a record $27.4 billion, including debt, with a further $35.2 billion of deals announced and pending completion, according to SPAC Research. SPAC deals last year hit $24.8 billion.