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Multinational conglomerate SoftBank Group Corp (TYO: 9984, SFTBF:US) filed for the initial public offering of two more of its blank check companies on Friday, February 5. The holdings company reportedly plans to raise somewhere between US$ 500 to US$ 550 million in total from both the IPOs.
The two new special purpose acquisition companies (SPACs), namely SVF Investment Corp 2 and 3, intends to seek for mergers in the technology sector initially, including corporations dealing with mobile communications and artificial intelligence (AI). Since the two SPACs are of different sizes, they could negotiate with companies of different maturity, as per its latest filings with the US Securities and Exchange Commission.
The Japanese enterprise previously launched its first SPAC SVF Investment Corp (NASDAQ: SVFAU, SVFAU:US). It raised about US$ 525 million in January and is headed led by SoftBank Vision Fund CEO Rajeev Misra.
Let’s take a peek at the two upcoming SPACs of SoftBank.
SVF Investment Corp 2
SVF Investment Corp 2 seeks to raise about US$ 200 million in gross proceeds from an offering of 20 million units at price of US$ 10 each. Every unit is set to comprise of a common stock and a fifth of a warrant, which would be exercisable at US$ 11.5.
SVF 2 has also agreed to a forward purchase agreement, as per which it commits an amount of US$ 100 to $150 million for a future business combination, according to its IPO prospectus.
Going by its proposed deal size, the blank check company is expected to hold a market value of US$ 250 million.
SoftBank Vision Fund’s managing partner Munish Varna is said to lead SVF 2’s management committee.
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SVF Investment Corp 3
In contrast to SVF Investment Corp 2, SVF Investment Corp 3 is expected to generate a capital of about US$ 350 million from its offering of 35 million units at a cost of US$ 10 apiece. But like the other SoftBank SPAC, each of SVF 3’s units will also contain a common stock and one-fifth of a warrant that will be exercisable at US$11.5.
SVF 3 intends to pool in another US$ 150 to 200 million upon the completion of its IPO for a future business merger. The SoftBank SPAC is expected to hold a market value of US$ 438 million, as per its proposed deal size.
Ioannis Pipilis, also a managing partner at SoftBank Vision Fund, is set to be SVF 3’s management committee head.
Vision Fund CFO Navneet Govil is also the chief financial officer for all of the holding company’s SPACs, which are supervised by SoftBank Investment Advisers.
