- General
- September 16, 2020
- 4 minutes read
Social Capital Eyes Fourth SPAC
Social Capital founder and Managing Partner Chamath Palihapitiya. Photo by Brian Ach/Getty Images for TechCrunch, under CC BY 2.0 license…
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| Social Capital founder and Managing Partner Chamath Palihapitiya.
Photo by Brian Ach/Getty Images for TechCrunch, under CC BY 2.0 license
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Social Capital Hedosophia, a partnership between investment firms Social Capital, led by Chamath Palihapitiya, and investor Ian Osborne, is seeking to launch a fourth special purpose acquisition company (SPAC) that’ll raise up to $500 million, according to a report [paywall] from Bloomberg. Already, Social Capital Hedosophia has launched three SPACs, the second of which recently reached a deal to merge with iBuying upstart Opendoor. Social Capital Hedosophia II, as the second SPAC is named, raised more than $400 million in its debut in April of this year, with all of the money now set to go to Opendoor as a result of the merger. Opendoor’s reverse merger will see the company become publicly-traded with an expected initial market capitalization of $4.8 billion, implying a solid win for Social Capital Hedosophia.
Social Capital Hedosophia’s first SPAC merged with aerospace company Virgin Galactic in October of last year. The firm’s third, Social Capital Hedosophia III, raised $720 million in its debut in April of this year and is currently on the look for a successful merger target. It’s such that Chamath Palihapitiya, Social Capital’s chair, has reserved stock tickers ranging from “IPOA” through “IPOZ” for potential SPACs. The play lies in the last letters, with Social Capital Hedoshophia’s three already launched SPACs bearing the stock tickers “IPOA”, “IPOB”, and “IPOC” respectively. Seemingly, Palihapitiya would like to launch up to 26 (A-Z) SPACs on the public markets.
According to Bloomberg, Social Capital Hedosophia has confidentially filed plans with the U.S. Securities and Exchange Commission for its fourth targeted SPAC.
