SoftBank aims to raise up to $525 million for its own blank-check company
- SoftBank aims to raise as much as $525 million through the
IPOof its blank-check company SVF InvestmentCorp., according to a regulatory filing published Monday.
- The special-purpose acquisition company, or
SPAC, will bridge SoftBank's private and public investment businesses and target "a fast-growing, IPO-ready technology company," SoftBanksaid.
- The company won't target firms SoftBank has previously invested in, Bloomberg reported Sunday.
- The news adds to the year's SPAC frenzy. More than $81.2 billion has been raised across 243 SPAC IPOs in 2020 so far.
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The special-purpose acquisition company, named SVF Investment Corp., will be managed by SoftBank Investment Advisors. The SPAC will bridge SoftBank's private and public investing businesses through the partnership with "a fast-growing, IPO-ready technology company," SoftBank said in the Securities and Exchange Commission filing.
"We believe that we have access to a wide range of compelling investment opportunities through our broad international presence and deep local networks," the company added.
Bloomberg reported Sunday that the SPAC won't target a firm SoftBank has already invested in. Citigroup, Deutsche Bank, and Cantor will serve as the IPO's bookrunners.
SPACs raise money in IPOs and use the funds to purchase a private company. The merged entity then trades publicly. Virgin Galactic, Nikola, and DraftKings all entered public
The rapid rise of blank-check companies drove record IPO activity in 2020. More than $81.2 billion has been raised across 243 SPAC IPOs year-to-date, according to SPACInsider.com. That compares to just $13.6 billion raised in 59 deals last year.
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